On January 1, 2020, the Balance in Great Lakes Co

question 55

Essay

On January 1, 2020, the balance in Great Lakes Co.'s Allowance for Bad Debts account was $15,600.During the year, a total of $10,500 of delinquent accounts receivable were written off as bad debts.The balance in the Allowance for Bad Debts account at December 31, 2020, was $21,900.
(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, 2020, balance of Allowance for Bad Debts should be $18,900.Show, in general journal format the adjustment required.

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Definitions:

Behavioral

Relating to or concerned with the actions or activities of living organisms in response to external or internal stimuli.

Humanistic

Pertains to a psychological perspective that emphasizes the study of the whole person, looking at human behavior through the eyes of the observer and the person doing the behaving.

Observable Behavior

Actions or reactions of an individual that can be directly seen or measured, without the need for inferring internal states or motivations.

Mental Processes

Internal operations that include thinking, perceiving, remembering and feeling, which influence human behavior.