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Sagot :
$4,535 amount should be debited to bad debt expense.
What is bad debt expense?
When a receivable is no longer recoverable because a customer is unable to fulfill their responsibility to pay an outstanding debt owing to bankruptcy or other financial troubles, a bad debt expense is reported.
Big Store stops paying its debts and fails to reimburse Company XYZ for $100,000 in items. Because the company is not convinced that Big Store will ever pay, the $100,000 is classified as a bad debt.
Because it reduces the amount of an asset, in this case accounts receivable, an allowance for doubtful accounts is considered a "counter asset."
As the amount is not a liability, bad debts are an expense to the business.
To know more about bad debt expense follow the link:
https://brainly.com/question/18568784
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