3.For the year ended December 31, 2010, Dent Co. estimated its allowance for uncollectible
accounts using the year-end aging of accounts receivable. The following data are
Allowance for uncollectible accounts, 1/1/10
Provision for uncollectible accounts during 2010
(2% on credit sales of $2,000,000)
Uncollectible accounts written off, 11/30/10
Estimated uncollectible accounts per aging, 12/31/10
After year-end adjustment, the uncollectible accounts expense for 2010 should be
Nenn Co.'s allowance for uncollectible accounts was $95,000 at the end of 2010 and
$90,000 at the end of 2009. For the year ended December 31, 2010, Nenn reported bad
debt expense of $13,000 in its income statement. What amount did Nenn debit to the
appropriate account in 2010 to write off actual bad debts?
Under the allowance method of recognizing uncollectible accounts, the entry to write off
an uncollectible account
increases the allowance for uncollectible accounts.
has no effect on the allowance for uncollectible accounts.