Question

Voight company's account balances at december 31 for accounts receivable and allowance for doubtful accounts were $1,400,000 and $70,000 (cr.), respectively. an aging of accounts receivable indicated that $128,000 are expected to become uncollectible. the amount of the adjusting entry for bad debts at december 31st is

Answer 1

$58,000 is the amount of adjusting entry for bad debts at december 31st. To calculate the adjusting entry for bad debts at december 31st we need to subtract the aloowance for doubtful accounts to accounts receivable which is $128,000 and $70,000 respectively. So 128,000 - 70,000 = $58,000. The answer in this question is $58,000.