Answer:
Explanation:
To write off specific accounts:
Debit (contra asset account) - Allowance for uncollectible accounts $17,000
Credit (asset account) - Accounts receivable $17,000
To reinstate account previously written off:
Debit (asset account) - Accounts receivable $750
Credit (contra asset account) - Allowance for uncollectible accounts $750
To adjust allowance for uncollectible accounts at year-end
:
Bad debt expense = allowance for uncollectible accounts at the end of the period - (allowance for uncollectible accounts at the beginning of the period - wrote off + reinstate account previously written off)
Bad debt expense = $14,900 – ($15,300 – $17,000 + $750)
Debit (expense account) - Bad debt expense $15,850
Credit (contra asset account) - Allowance for uncollectible accounts 15,850
