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8 January, 19:00

On January 1, 2019, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,177. During the first 11 months of the year, bad debts expense of $21,273 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was $9,773. What was the total of accounts written off during the first 11 months?

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  1. 8 January, 22:40
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    Th etotal accounts written off during 11 months is $ 24,677

    Explanation:

    Computation of amounts written off

    The movement in the allowance account is as per the following formula

    Opening balance + Bad Debts Expense - Amounts written off = Ending balance

    $ 13,177 + $ 21,273 - Amounts written off = $ 9,773

    By solving the equation

    Amounts written off = $ 13,177 + $ 21,273 - $ 9.773 = $ 24,677

    In other words, the bad debts expense for the year plus the movement in the allowance balance represents the amounts written off
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