Broadway Limited Had an $800 Credit Balance in Allowance for Doubtful

Essay

Broadway Limited had an $800 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Instructions
a. Prepare the adjusting entry at December 31, 2018, to recognize bad debts expense.
b. Assume the same facts as above except that the Allowance for Doubtful Accounts account had an $800 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's bad debts.