On January 1, 2019, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,177. During the first 11 months of the year, bad debts expense of $21,273 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was $9,773. What was the total of accounts written off during the first 11 months?

Question

Taniya Mitchell

Business

4 March, 01:47

On January 1, 2019, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,177. During the first 11 months of the year, bad debts expense of $21,273 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was $9,773. What was the total of accounts written off during the first 11 months?

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Answers (1)

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Landon Berger · Answer 1

Th etotal accounts written off during 11 months is $ 24,677

Explanation:

Computation of amounts written off

The movement in the allowance account is as per the following formula

Opening balance + Bad Debts Expense - Amounts written off = Ending balance

$ 13,177 + $ 21,273 - Amounts written off = $ 9,773

By solving the equation

Amounts written off = $ 13,177 + $ 21,273 - $ 9.773 = $ 24,677

In other words, the bad debts expense for the year plus the movement in the allowance balance represents the amounts written off