On December 31,2012,Coolwear Inc.had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $48,400 and $940,respectively.During 2013,Coolwear wrote off $820 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,140 at December 31,2013.Bad debt expense for 2013 would be:

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The bad debt expense is calculated as the ending allowance for uncollectible accounts ($1,140) plus the write-offs during the year ($820) minus the beginning allowance ($940). This results in a bad debt expense of $1,020.