Smithson corporation had a 1/1/20 balance in the allowance for doubtful accounts of $30,000. during 2020, it wrote off $21,600 of accounts and collected $6,300 on accounts previously written off. the balance in accounts receivable was $600,000 at 1/1 and $720,000 at 12/31. at 12/31/20, smithson estimates that 5% of accounts receivable will prove to be uncollectible. what is bad debt expense for 2020?

Bad Debt Expense for 2020: $21,300

Explanation:

During 2020, when wrote of accounts, the following entry was made:

Debit Allowance for Doubtful Accounts $21,600

Credit Accounts Receivable $21,600

When collected on accounts previously written of:

Debit Accounts Receivable $6,300

Credit Allowance for Doubtful Accounts $6,300

Debit Cash $6,300

Credit Accounts Receivable $6,300

At 12/31/20, before adjusting, the balance of Allowance for Doubtful Accounts was credit: $30,000 - $21,600 + $6,300 = $14,700

Bad debts was estimated: 5% x $720,000 = $36,000

Bad Debt Expense for 2020 for adjusting entry:

$36,000 - $14,700 = $21,300

its ii) i did this test

explanation:

a

explanation:

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