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Question - On January 1, 2013, the balance in Kubera Co's Allowance for Bad Debts account was 1,300. During the year, a total of $3615 of delinquent accounts receivable was written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2013 was 1,420.
Required:
A. What was the total amount of bad debts expense recognized during the year?
B. As a result of a comprehensive analysis, it is determined that the December 31, 2013, balance of Allowances for Bad Debts should be 4,330. Show the adjustment required in journal entry format.
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