$***$Please answer using the template provided $,$ thank you$***$

Determining bad debt expense

The following information is available for Fess Company:

During $2023,$ Fess estimated that its bad debt expense should be $1\%$ of all credit sales.

As a result of a review and aging of accounts receivable in early January $2024,$ it has

been determined that an allowance for uncollectible accounts of $$1,600$ is needed at

December $31,2023.$

Required:

What is the total amount that Fess should record as bad debt expense for the year

ended December $31,2023?$

Show the journal entries affected the allowance for uncollectible accounts that Fess

made during $2023.$

SOLUTION:

Requirement $1$:

We can determine the amount of bad debt expense in $2023$ by first examining the

allowance for uncollectible accounts.

Total bad debt expense for the year ended December $31,2023$ should be:

Requirement $2$:

a$)$ Record the original bad debt expense

b$)$ Record the write$-$off of bad debts

c$)$ Record the additional bad debt expense