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23 January, 13:42

Nenn Co.'s allowance for uncollectible accounts was $190,000 at the end of 2024 and $200,000 at the end of 2023. For the year ended December 31, 2024, Nenn reported bad debt expense of $26,000 in its income statement. What amount did Nenn debit to the appropriate account in 2024 to write off actual bad debts?

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  1. 23 January, 13:58
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    The amount Nenn debited to write off of actual bad debt is $36,000

    Explanation:

    Allowance for Uncollectible beginning = $200,000

    Allowance for Uncollectible at the end = $190,000

    Bad debt expense reported = $26,000

    Amount Nenn debited to write off of actual bad debt = $200,000 + $26,000 - $190,000 = $36,000
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