It is simple math. Let me give you an example.

If you have a balance of negative 100 and you need a balance of 1000 you add 1100.

(100) + 1100 = 1000

Or even simpler, you have -1 and you want 5, you add 6.

-1 + 6 = 5

The only difference here is you are dealing with debits and credits. The math is the same.

Let me see if I understand,I know that with the simple math
-600+72,714=72,114

Now how would this be form for accounting or is it just this simple or do I have to have the 72,714 be listed as an adjustment. I'll let you explain or I'll confuse both of us.

Haha, that last line made me laugh. It is just that simple.

$43,700... Beginning Allowance balance
-44,300... A/R written off
=($600)... Ending Allowance balance, prior to adjustment.
+ 72,714... Credit to Allowance account
= $72,114... Ending Allowance balance, after adjustment


You need to make an entry to the Allowance of $72,714 with the debit being Bad Debt Expense. I'm not sure how much you are working with debits and credits yet. I could explain using those terms but I don't want to confuse you if you aren't comfortable with debits and credits yet.

Debits and credits are still very new to me.
Thank you so much and I'm sure you will see me a lot until I understand this. Now can you walk me through the uncollectible accounts expense. Would that be the total from the beginning 43,700 then take that away from 72,114 or have I lost site again.

That is the $72,714, There are two sides to the entry - $72,714 dr to the expense and $72,714 credit to the allowance.

Thank you, I have completed this assignment with you help and you made me work and thanks for that or else I will never get this. You are a very patient person.

You're welcome. I hope you will read the whole thread over again and make sure you understand it. I can guarantee it will come in useful in the future. Good luck.