Nenn Co.'s allowance for uncollectible accounts was $95,000 at the end of 2010 and $90,000 at the end of 2009.For the year ended December 31, 2010, Nenn reported bad debt expense of $13,000 in its income statement.What amount did Nenn debit to the appropriate account in 2010 to write off actual bad debts?

Question

Quizplus · Accepted Answer

To find the amount debited to write off actual bad debts, we need to take the difference between the 2010 and 2009 allowance for uncollectible accounts, which is $5,000 ($95,000 - $90,000). This means that Nenn had $5,000 less in their allowance account in 2010 compared to 2009, which could be due to actual write-offs. Since the bad debt expense reported in the income statement was $13,000, we can assume that $8,000 ($13,000 - $5,000) was debited to the allowance account to write off actual bad debts. Therefore, the answer is B.

Nenn Co'S Allowance for Uncollectible Accounts Was $95,000 at the End