Sudan Ltd.'s allowance for doubtful accounts was $85,000 at the end of 2017 and $105,000 at the end of 2016.For the year ended December 31, 2017, Sudan reported bad debt expense of $18,000 in its income statement.What amount did Sudan debit to allowance for doubtful accounts during 2017 to write off actual bad debts?

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Allowance for doubtful accounts increased by $20,000 ($105,000 - $85,000). This increase is due to two factors: (1) the write-off of actual bad debts, and (2) the addition to the allowance for doubtful accounts. The write-off of actual bad debts is $18,000, so the addition to the allowance for doubtful accounts must be $2,000 ($20,000 - $18,000).

Sudan Ltd'S Allowance for Doubtful Accounts Was $85,000 at the End