## Answers

1. Wrote off amount will be deducted and if repaid will be added back to allowance account.

So balance before adjustment = $23000 + $5000 - $18500

= $9500 debit.

2. Allowance balance required = $250000*15% = $37500

Bad debts expense = allowance required + existing debit balance

= $37500 + $9500

= $47000

3. Ending balance in allowance account will be $37500.

Feel free to ask any queries..

Also plz upvote it means a lot .. thank you

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