Answer:
$1,400
Explanation:
beginning balance of allowance for doubtful accounts $900
$2,500 were written off
bad debt expense of $3,000
the ending balance of the allowance for doubtful accounts will be = beginning balance - write offs + bad debt expense = $900 - $2,500 + $3,000 = $1,400
the journal entries to record the write off and the bad debt expense were:
Dr Allowance for doubtful accounts 2,500
Cr Accounts receivable 2,500
Dr Bad debt expense 3,000
Cr Allowance for doubtful accounts 3,000
