At December 31, 2010, Braddock Company had a balance of $15,090 in the Allowance

Question

At December 31, 2010, Braddock Company had a balance of $15,090 in the Allowance for Doubtful Accounts. During 2011, Braddock wrote off accounts totaling $12,630. One of those accounts ($1,660) was later collected. At December 31, 2011, an aging schedule indicated that the balance in the Allowance for Doubtful Accounts should be $18,850.
Prepare journal entries to record the 2011 transactions of Braddock Company.

Account/Description Debit Credit
Allowance for doubtful accounts 12630
Accounts receivable 12630
(To record amount written off.)
Accounts receivable 1660
Allowance for doubtful accounts 1660
(To reverse write-off.)
Cash 1660
Accounts receivable 1660
(To record collection of amount written off.)
Bad debts expense
Allowance for doubtful accounts
(To record estimated bad debts for year.)


find bad debt expense and allowance for doubtful accounts amounts to record estimated bad debts for the year

Explanation / Answer

Balance in Allowance for Doubtful Accounts : $15,090 Less Amounts written off                                 : ($ 12,630) Reinstatement for Amount Received                :   $1660 Balance in the Allowance for Doubtful Accounts : $4120 Balance required  in Allowance for Doubtful Accounts                           $18,850 Bad Debt Expense                                                  $14,730

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