Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 59

Determining Financial Statement Effects of Write-Offs and Bad Debt Expense Using the Allowance Method
Using the following categories, indicate the effects of the following transactions. Use + for increase and for decrease and indicate the accounts affected and the amounts.

a. During the period, customer balances are written off in the amount of $10,000.
b. At the end of the period, bad debt expense is estimated to be $8,000.