Star's Allowance for Doubtful Accounts had a credit balance of $37,800 on January 1, 2019. During 2019, the company wrote off $30,600 of Accounts Receivable as uncollectible. The company prepared the following summary schedule from an aging of accounts receivable outstanding on December 31, 2019:
Determine the Bad debts Expense to be recorded on December 31, 2019.

Question

Star's Allowance for Doubtful Accounts had a credit balance of $37,800 on January 1, 2019. During 2019, the company wrote off $30,600 of Accounts Receivable as uncollectible. The company prepared the following summary schedule from an aging of accounts receivable outstanding on December 31, 2019:
 Determine the Bad debts Expense to be recorded on December 31, 2019.

Quizplus · Accepted Answer

Desired Year-end Allowance Balance = Beginning Allowance Balance + Bad Debt expense Adjustment - Write-offs
$42,600 = $37,800 + X - $30,600
X = $42,600 - $37,800 + $30,600
X = $35,400
 11ee7640_e1d4_386f_90da_d9dd29eba8ba_TBCB1007_00

Star's Allowance for Doubtful Accounts Had a Credit Balance of $37,800