Fred's Fruit Smoothies began the year with a $3, 200 credit balance in its Allowances for Doubtful Accounts.During the year, it accrued $22, 000 of bad debt expense and wrote off accounts totaling $27, 000.At year-end, a percentage of the outstanding accounts receivable indicated that a $4, 800 allowance should be provided for on that date.The year-end adjustment for bad debt expense should be

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The year-end adjustment for bad debt expense is $6,600. This is calculated as follows:Beginning balance in Allowances for Doubtful Accounts: $3,200Add: Bad debt expense accrued during the year: $22,000Less: Accounts written off during the year: $27,000Ending balance in Allowances for Doubtful Accounts: $4,800Adjustment for bad debt expense: $6,600

Fred's Fruit Smoothies Began the Year with a $3, 200