Castle company provides estimates for its uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $18,080 at the beginning of 2021 and a $24,010 credit balance at the end of 2021 (after adjusting entries). if the direct write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the income statement for 2021 would have included bad debt expense of $18,700 and revenue of $3,800 from the collection of previously written off bad debts. required: determine bad debt expense for 2021 according to the allowance method.
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Ответ:
Bad debt expense for 2021 according to the allowance method is $20,830
Explanation:
We know that,
Ending balance of Allowance for Uncollectible Accounts = Beginning balance of Allowance for Uncollectible Accounts + 2021 bad debts + write off amount - collection made
$24,010 = $18,080 + 2021 bad debts + $3,800 - $18,700
$24,010 = $3,180 + 2021 bad debts
So, the 2021 bad debts is $24,010 - $3,180 = $20,830
We considered all the items for the calculation which is given in the question
Ответ:
A good way to either go bankrupt or to make millions
Explanation: