On January the balance in Tabor Company's Allowance for Bad Debts account was $ During the first months of the year, bad debts expense of $ was recognized. The balance in the Allowance for Bad Debts account at November was $
Required:
a What was the total of accounts written off during the first months? Hint Make a Taccount for the Allowance for Bad Delsts account.
b As the result of a comprehensive analysis, it is determined that the December balance of the Allowance for Bad Debts account should be $ Show the adjustment required in the journal entry format.
c During a conversation with the credit manager, one of Tabor's sales representatives learns that a $ receivable from a bankrupt customer has not been written off but was considered in the determination of the appropriate yearend balance of the Allowance for Bad Debts account balance. What is the effect of writeoff on net income?
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What was the total of accounts written off during the first months? Hint: Make a Taccount for the Allowance for Bad Debts account.
Bad debts writeoff
