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2 Allowance balance, dic 31, year 1 = 38,000.00, witte off, year 2 - 45,000, recoveries, year 2 = 12,000, allowance balance before year 2

2 Allowance balance, dic 31, year 1 = 38,000.00, witte off, year 2 - 45,000, recoveries, year 2 = 12,000, allowance balance before year 2 provision 5,000, required allowance at dec 31. year 2 78, 750.00 and year 2 provision = 73,750 ( 78,750- 5,000) Bad Debt expenses db 73,750 Allowance for doubtful account 73,750

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