On December 31,2018,Coolwear Inc.had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $48,400 and $940,respectively.During 2019,Coolwear wrote off $820 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,140 at December 31,2019.Bad debt expense for 2019 would be:

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The bad debt expense is calculated by adjusting the Allowance for Uncollectible Accounts to the desired year-end balance. Starting with a balance of $940 and writing off $820 would reduce the allowance to $120 ($940 - $820). To adjust the allowance to the desired balance of $1,140 at year-end, an additional $1,020 ($1,140 - $120) must be added to the allowance account, which is recognized as the bad debt expense for 2019.