Bank of America Bank of America is one of the oldest banks in America, as well as one of the largest.

Founded in the late 1800s, Bank of America has grown from a strictly California-based bank to one with operations in 29 states. Information from Bank of America’s annual report follows. (Amounts are in millions.)

Using this information, answer the following questions:
1. Provide the journal entry made by Bank of America to record bad debt expense for 2005.
2. Provide the journal entry made by Bank of America to record the write-off of actual bad debts during 2005.
3. Estimate the amount of bad debts previously written off that Bank of America recovered in 2005.

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2005 2004 Bad debt expense $4,021 $2,868 Write-off of uncollectible accounts 5,834 4,147 Allowance for bad debts (year-end) 8,045 8,626