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On January 1, 2013, the balance in Smith Co.'s Allowance for Bad Debts account was $4,860. During the year, a total of $11,950 of delinquent accounts receivable was written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2013, was $5,240.
A. What was the total amount of bad debts expense recognized during the year?
B. As a result of a comprehensive analysis, it is determined that the December 31, 2013, balance of Allowance for Bad Debts should be $11,600. Show the adjustment required in journal entry format
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