Question
On January 1, 2022, the balance in Kubera Company's Allowance for Bad Debts account was $1,090. During the year, a total of $3,595 of delinquent
On January 1, 2022, the balance in Kubera Company's Allowance for Bad Debts account was $1,090. During the year, a total of $3,595 of delinquent accounts receivable was written off as bad debts. The unadjusted balance in the Allowance for Bad Debts account at December 31, 2022, was $1,460. Required:
a)What was the total amount of bad debts expense recognized during the year? (Hint: Make a T-account for the Allowance for Bad Debts account.)
b)As a result of a comprehensive analysis, it is determined that the December 31, 2022, adjusted balance of Allowance for Bad Debts should be $4,240. Show the adjustment required in journal entry format.
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