Joe\'s Inc. prepared an aging of its accounts receivable at December 31, 2009 an

Question

Joe's Inc. prepared an aging of its accounts receivable at December 31, 2009 and estimated that the net realizable value of the receivables would be $300,000. Additional information is available as follows:
Allowance for doubtful accounts at 1/1/09—credit balance: $ 34,000
Accounts written off as uncollectible during 2009: 23,000
Accounts receivable at 12/31/09:   325,000
Uncollectible accounts recovered during 2010:   5,000


Required:a. What should Ace book as its bad debt expense at 12/31/09?
b. What is the journal entry to record the bad debt expense in item a?

Explanation / Answer

23000+5000-34000=(6000) Bad Debt Expense 6000 Allowance 6000

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