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30 August, 13:31

On January 1, 2019, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,215. During the first 11 months of the year, bad debts expense of $21,561 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was $9,739. Required: a. What was the total of accounts written off during the first 11 months? (Hint: Make a T-account for the Allowance for Bad Debts account.) b. As the result of a comprehensive analysis, it is determined that the December 31, 2019, balance of the Allowance for Bad Debts account should be $9,271. Show the adjustment required in the journal entry format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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  1. 30 August, 13:36
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    (a) The bad debt write-offs for 11 months can be calculated by subtracting the November 30 balance from the total of the beginning.

    Bad - debt write offs:

    = Allowance for Bad Debts + bad debts expense - Allowance for Bad Debts account at November 30, 2019

    = $13,215 + $21,561 - $9,739

    = $25,037

    (b) Allowance for Doubtful debt:

    = Allowance for Bad Debts account at November 30, 2019 - Allowance for Bad Debts account at December 31, 2019

    = $9,739 - $9,271

    = $468

    The journal entry for the above calculation is as follows:

    Allowance for doubtful accounts Dr. $468

    To Accounts receivables $468
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