2. Kendall Corporation had a 1/1/19 balance in the Allowance for Doubtful Accoun

Question

2. Kendall Corporation had a 1/1/19 balance in the Allowance for Doubtful Accounts of $18,000. During 2019, it wrote off $11,500 of accounts and collected $4,500 on accounts previously written off. The balance in Accounts Receivable was $350,000 at 1/1 and $530,000 at 12/31. At 12/31/19, Kendall estimates that 6% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2019?

3. Smithson’s allowance for uncollectible accounts was $180,000 at the end of 2018 and $160,000 at the end of 2019. For the year ended December 31, 2019, Smithson reported bad debt expense of $7,000 in its income statement. What amount did Smithson debit to the appropriate account in 2019 to write off actual bad debts?

Explanation / Answer

2 Bad Debt Expense for 2019=(530000*6%)-(18000-11500+4500)= $20800 3 Amount written off as actual bad debts = (180000+7000)-160000 = $27000

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