ok so I have to: “determine the bad debt expense for Year 2 based on these facts”
Year 1
Accounts receivable: $7,022,075,000
Allowance for doubtful accounts: $(86,605,000)
Account Receivable Write-offs: $55,000,000
Year 2:
Accounts Receivable: $7,336,308,000
Allowance for Doubtful Accounts: $(96,989,000)
Accounts Receivable Write-offs: $69,000,000
–> assume that the business did not record any recoveries.
Thanks so much to anyone that can help.


Beginning Balance (Allowance account) + Bad Debt Expense – Write-Offs = Ending Balance (Allowance account)
Year 2
86,605,000 + Bad Debt Expense – 69,000,000 = 96,989,000
Bad Debt Expense = $79,384,000