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4 August, 05:35

Kennedy Company uses the balance sheet approach in estimating uncollectible accounts expense. The company prepares an adjusting entry to recognize this expense at the end of each month. During the month of July, the company wrote-off a $5,200 receivable and made no recoveries of previous write-offs. Following the adjusting entry for July, the credit balance in the Allowance for Doubtful Accounts was $4,300 larger than it was on July 1. What amount of uncollectible account expense was recorded for July?

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  1. 4 August, 07:12
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    The amount of uncollectible account expense was recorded for July was $9,500

    Explanation:

    According to the given data we have the following:

    Accounts written off amount=$5,200

    Increase in Allowance for Doubtful Accounts=$4,300

    Therefore, in order to calculate the amount of uncollectible account expense was recorded for July we would have to make the following calculation:

    Uncollectible accounts expense for July = Accounts written off + Increase in Allowance for Doubtful Accounts

    Uncollectible accounts expense for July = $5,200+$4,300

    Uncollectible accounts expense for July=$9,500

    The amount of uncollectible account expense was recorded for July was $9,500
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