Question

ter 7 Problems Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,330 at the beginning of 2021 and a $22,510 credit balance at the end of 2021 (after adjusting entries). If the direct write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the income statement for 2021 would have included bad debt expense of $17.200 and revenue of $2,300 from the collection of previously written off bad debts. ins Required: Determine bad debt expense for 2021 according to the allowance method. eBook Bad del expense for the year 2021 References

Answer 1

Using The Direct wole off method, Bad debt eapen@ is equal to actual write off. collections of meviously written off receivables are recorded al Revenue Allowance for uncollected accounts Balance @ Beginning of year o Receivables written off 6) collection of Receivables Deviously wrilten off 17330 (17200) 2300 (o) Balance @ end of year (22510) Bad clent expence for year 2021 $ 20080