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During 2018, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2017, allowance for doutbful accounts was $40,000. What is the appropriate year-end adjusting entry Jacobson must use to record bad debts expense and update the allowance for doubtful accounts on December 31, 2018

Sagot :

Answer: Debit: Bad debt expense $21400

Credit: Allowance for doubtful debt $21400

Explanation:

Based on the information given, the bad debt expense will be:

= 49400- (40000-18000+6000)]

= 49400 - 28000

= 21,400

The bad debt expenses of $21400 will be debited

The Allowance for doubtful Accounts of $21400 will be credited.

(To record bad debts expense)

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