Question - On January 1, 2013, the balance in Kubera Co.'s Allowance for Bad Debts account was $1,350. During the year, a total of $3,655 of delinquent accounts receivable was written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2013, was $1,400.
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, 2013, balance of Allowance for Bad Debts should be $4,360. Show the adjustment required in journal entry format.