Smithson Corporation had a 1/1/14 balance in the Allowance for Doubtful accounts of $20,000. During 2014, it wrote off $14,400 of accounts and collected $4,200 on accounts previously written off. The balance in Accounts Receivable was $400,000 at 1/1 and 480,000 at 12/31. At 12/31/14, Smithson estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2014? I don't understand why the answer is $14,200 also I can't seem to figure out how that was worked out. Can someone please give a visual explanation and what would be the journal entry? Thank you.