On January 1, 2025, Triangle Corp. has the following account balances:

Accounts Receivable
18,000

Allowance for Bad Debts
	1,400

Bad Debts Expense

During the year, Triangle has

$160,000

of credit sales, collections of credit sales of

$145,000,

and

writeoffs

of

$3,200.

It records bad debts expense at the end of the year using the

agingofreceivables

method. At the end of the year, the aging analysis shows that

$1,900

is the estimate of uncollectible accounts. Before the

yearend

entry to adjust bad debts expense is made, the balance in the Allowance for Bad Debts account is ________.

Answer rating: 100% (QA)

To find the balance in the Allowance for Bad Debts account before the yearend entry we need to deter... View the full answer