If a firm discovers that one of its accounts totaling $350 should be written off as uncollectible, if using an aging of receivables, the firm determines that the ending balance of the Allowance for Doubtful Accounts should be ($1,000).

I'm also given that these is already $828 in Allowance for Doubtful Accounts and $4000 in Accounts Receivables in the beginning balance.

How can I record this entry?

Thank you very much for your help!

Entry should be:
Dr Bad Debts Expense 522
Cr Allowance for Doubtful Accounts 522

Quote:

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Originally Posted by goldenbutterfly

Entry should be:
dr Bad Debts Expense 522
cr Allowance for Doubtful Accounts 522

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Thank you very much! But how did you get the 522 amount?

Thanks again!

It would be best to visualize the computation using the T-account:

Allowance for Doubtful Accounts, beg 828
Less: Write-off of AR (350)
Less: Required ending balance of ADA (1000)

Required Adjustment to ADA 522