On December 31,2015,Coolwear Inc.had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $48,400 and $940,respectively.During 2016,Coolwear wrote off $820 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,140 at December 31,2016.Bad debt expense for 2016 would be:

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To find the bad debt expense for 2016, adjust the allowance account to the desired ending balance. Start with the beginning balance of $940, subtract the $820 write-off, and then determine the amount needed to reach the desired ending balance of $1,140. The calculation is: $1,140 (desired ending balance) - ($940 - $820) = $1,020.