Q1) Allowance account and financial statement effect. Following is portion of present assets section of balance sheets of Avanti's Inc at Dec 31, 2009 and 2008.
|Accounts receivable , less allowances
|For bad debts of 9500 and 17900 respectively
If $11,800 of accounts receivable were written off during 2009, compute amount of bad debts expense identified for the year? Use T account model of Allowance account, plug in three amounts that you know and solve for unknown.