Answer:
$1,020
Explanation:
Coolwear Inc. had a balance of $48,400 in account receivables and also a balance of $940 in the uncollectible account on December 31, 2015.
During the year 2016 Coolwear Inc. wrote of $820 in account receivable and had an allowance of $1,140 for the uncollectible account at December 31, 2016
The bad debt expense for the year 2016 can be calculated as follows
Bad debt expense=$1,140-($940-$820)
= $1,140-$120
= $1,020
Hence the bad debt expense for 2016 is $1,020
