Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 11

Bad debts analysis-Allowance account On January 1, 2016, the balance in Kubera Co.'s Allowance for Bad Debts account was $9,720. During the year, a total of $23,900 of delinquent accounts receivable was written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2016, was $10,480.
Required:
a. What was the total amount of bad debts expense recognized during the year? (Hint: Make a T-account for the Allowance for Bad Debts account.)b. As a result of a comprehensive analysis, it is determined that the December 31, 2016, balance of Allowance for Bad Debts should be $23,200. Show in the horizontal model or in journal entry format the adjustment required.