Question

Nenn Co.'s allowance for uncollectible accounts was $180,000 at the end of 2011 and $190,000 at the end of 2012. For the year ended December 31, 2012, Nenn reported bad debt expense of $27,000 in its income statement. What amount was the net write-off for actual bad debts

Answer 1

$17,000

Step-by-step explanation:

Nen's corporation allowance for uncollectible debt was $180,000 for 2011 and $190,000 for 2012

= $190,000-$180,000

= $10,000

Therefore net write off for actual debts can be calculated as follows

= $27,000-$10,000

= $17,000