ACCTG 10 a receivable under the allowance method what amount

(ACCTG 10 a receivable, under the allowance method, what amount of bad debts expense will be recorded on December 31? MacBook Pro

Solution

Calculate Bad debts expenses :

Allowance for doubtful account should be on december 31 = 894000*10% = 89400

Previously recorded = 11600

Bad debts expenses should be recorded = (89400-11600) = 77800