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28 April, 15:04

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:a. $320b. $1,140c. $820d. $1,020

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  1. 28 April, 15:28
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    The answer is: D) $1,020

    Explanation:

    The formula for calculating bad debt expenses 2019 for Coolwear Inc. is:

    Bad debt expenses = allowance for uncollectible accounts 2019 - allowance for uncollectible accounts 2018 + amount written off as bad debt during 2019

    Bad debt expenses 2019 = $1,140 - $940 + $820 = $1,020
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