Next, let's use the tool below to calculate the ending balances of the different accounts in the preceding example. Having Trouble? Loan Issuance Loan... Writ... MF lent $5,000 to Amit on January 01, 2020. (For simplicity, we assume there is no interest.) At the time of loan issuance, MF estimated that $500 of loans receivable would probably be uncollectible, based on their knowledge of historical credit losses. Loan Issuance Date Accounts Debit Credit 01/01/20 Loans Receivable $5,000 Loans Receivable $5,000 $5,000 Cash $5,000 Cash $5,000 $5,000 Bad Debt Expense $500 Bad Debt Expense $500 $500 Allowance for Credit Losses $500 Allowance for Credit Losses $500 $500 Cash Debit Credit Beginning Balance Ending Balance Loans Receivable Debit Credit Beginning Balance Ending Balance Allowance for Credit Losses Debit Credit Beginning Balance Ending Balance Bad Debt Expense Debit Credit Beginning Balance Ending Balance Attempts left: 1 SAVE SUBMIT