Baseball Corporation uses the allowance method to account fo

Baseball Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the? year, Allowance for Bad Debts had a credit balance of $1,100. During the year Baseball wrote off uncollectible receivables of $2,400. Baseball recorded Bad Debts Expense of $2,700. What is Baseball\'s ?year-end balance in Allowance for Bad? Debts?

Solution

Balance in Allowance for Bad? Debts = 1100+2700-2400= $1400