1,200,000.

00
50000
1,150,000.00

Doubtful Account Expense?

Formula of ADA
Accounts Receivable
Allowance for Doubtful Accounts (Required)
Net Realizable Value of A/R

Allowance for Doubtful Accounts, Beginning 10,000.00

Add: Doubtful Accounts Expense 40,000.00
Total 50,000.00
Less: Writeoff -
Allowance for Doubtful Accounts, Ending (Require Allowance) 50,000.00

Doubtful Account Expense 40,000.00

Allowance for Doubtful Accounts 40,000.00
 2020
Bad Debt Losses Charge Sales
100,000.00 1,000,000.00
10%

Sales
Credit Sales Cash Sales Total Sales
10,000,000.00 1,000,000.00 11,000,000.00
 20,000.00
- 30,000.00
- 10,000.00

Doubtful Accounts

Allowance for Doubtful Accounts

Require Allowance
Allowance for Doubtful Accounts
Doubtful Account Expense
Doubtful Expense before Adjustments
Adjustments

20,000.00
Allowance for Doubtful Accounts 20,000.00

30,000.00
Doubtful Accounts 20,000.00
Miscellaneous Income 10,000.00

40,000.00
- 20,000.00
60,000.00