On January 1, 2010, the balance in Kubera Co.s Allowance for Bad Debts account was $9,720. During

Question:

On January 1, 2010, the balance in Kubera Co.’s Allowance for Bad Debts account was $9,720. During the year, a total of $23,900 of delinquent accounts receivable was written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2010, was $10,480.

Required:

a. What was the total amount of bad debts expense recognized during the year?

b. As a result of a comprehensive analysis, it is determined that the December 31, 2010, balance of Allowance for Bad Debts should be $23,200. Show in the horizontal model or in journal entry format the adjustment required.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...