Question

Nenn Co.'s allowance for uncollectible accounts was $180,000 at the end of 2011 and $190,000 at the end of 2012. For the year ended December 31, 2012, Nenn reported bad debt expense of $27,000 in its income statement. What amount was the net write-off for actual bad debts

Answer 1

The amount Nenn debited to write off actual bad debt is $17,000

Step-by-step explanation:

Please see computation below

Given that;

Beginning balance of allowance for uncollectible = $180,000

Ending balance of allowance for uncollectible = $190,000

Bad debt expenses reported = $27,000

With regards to the above information,

the net write off for actual bad debts is

= $180,000 + $27,000 - $190,000

= $17,000