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Indicate the accounts affected and enter decreases to account categories with a minus sign. a. At the end of the period, bad debt expense is estimated to be $15,000. b. During the period, bad debts are written off in the amount of $9,500.

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hyderali230

Answer:

Explanation:

a. At the end of the period, bad debt expense is estimated to be $15,000.

b. During the period, bad debts are written off in the amount of $9,500.

  Assets          =                             Liabilities    +     Stockholder's Equity

a.

                                                                               Retained Earning -$15,000

Account Receivable  -$15,000

b.

Allowance for Doubtful Account -$9,500

Account Receivable -$9,500

(Allowance for Doubtful Account is a contra account to account receivable decrease in this account will ultimately increase the assets value.

dubeyshailja64

The effects of the transactions can be shown in an accounting equation. The effects are given in the attachment:

What is an accounting equation?

An accounting equation is an equation that shows the relation between assets, liabilities, and shareholder's equity as:

[tex]\rm Assets = Liabilities + Equity[/tex]

It allows dual effect of every transaction.

The accounts affected while recording bad debt expense is the debtor account and the provision for bad debt, ultimately the equity. Similarly while writing off the bad debts, these two accounts will decrease.

Learn more about accounting equation here:

https://brainly.com/question/14467641

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