Pineapple's Fruit Smoothies began the year with a $4,200 credit balance in its Allowances for Doubtful Accounts. During the year, it accrued $21,500 of bad debt expense and wrote off accounts totaling $28,000. 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 $7,100, which is calculated as follows:Beginning balance in Allowances for Doubtful Accounts: $4,200Add: Bad debt expense accrued during the year: $21,500Less: Accounts written off during the year: $28,000Ending balance in Allowances for Doubtful Accounts: $4,800Adjustment for bad debt expense: $4,800 - $4,200 = $7,100

Pineapple's Fruit Smoothies Began the Year with a $4,200 Credit