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On January 1, 2010, the balance in Kubera Co.'s Allowance for Bad Debts account was $9,720. During the year, a total of $23,900 of delinquent accounts receivable was written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2010, was $10,480.Required:
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, 2010, balance of Allowance for Bad Debts should be $23,200. Show in the horizontal model or in journal entry format the adjustment required.
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