Question

Use the following to answer questions 20 – 22 At the beginning of the year; MB, Inc.'s allowance for uncollectible accounts had a beginning balance of $3,600. On January 22nd, MB wrote off the A/R from customer C for $200 20. Record the entry for write-off 21. $ _By the end of the year (December 31st); total accounts written off were $3,550 (including the write off for customer C). What is the balance in the allowance for uncollectible accounts after all the write- offs? 22. $ How much did bad debt expense change when the company wrote off the accounts receivables?

Answer 1

29.

General Journal	Debit	Credit
Accounts for uncollectibles account	$200
Accounts receivable		$200

21.

Accounts for uncollectibles accounts, beginning balance = $3,600

Accounts receivable written off = $3,550

Accounts for uncollectibles accounts, Ending balance = Accounts for uncollectibles accounts, beginning balance - Accounts receivable written off

= 3,600-3,550

= $50

22.

Bad debt expense will not change when the company writes off accounts receivable.

Change in bad debt expense = $0

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