On december 31, 2018, coolwear inc. had balances in accounts receivable and allowance for uncollectible accounts of $48,400 and $940, respectively. during 2019, coolwear wrote off $820 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,140 at december 31, 2019. bad debt expense for 2019 would be:

Bad debt expense          $ 1,020  

Accounts Receivable  $ 1,020

Explanation:

Initial Balance  

Accounts Receivable                            $ 48,400  

Allowance for Uncollectible Accounts  $ 940

During 2019, Coolwear wrote off $820 in accounts receivable  

Allowance for Uncollectible Accounts$ 820  

Accounts Receivable                      $ 820

Accounts Receivable                            $ 47,580  

Allowance for Uncollectible Accounts  $ 120

Determined that there should be an allowance for uncollectible accounts of $1,140 at December 31, 2019  

Bad debt expense          $ 1,020  

Accounts Receivable  $ 1,020

Final Balance  

Accounts Receivable$ 47,580  

Allowance for Uncollectible Accounts  $ 1,140

Accounts Uncollectible are those credit that the company give and there are not chances of been collected.

When the customers buy products on credits but then the company can't collect the debt, then it's necessary  to write off the unpaid bill as  uncollectible

One way it's to write-off directly the bad debts at the moment decided that the credit are uncollectible, the total amount  it's reported as bad debt expenses which affect negativly the income statement and the accounts receivable are reduce in the same amount, less assets.

The other way it's to determine a percentage of total amount of accounts receivables as uncollectible, exist many ways to analize the accounts receivable and figure the value of uncollectible.

When the company have the percentage of uncollectible accounts the journal entry required is Bad Expenses (debit) with Allowance for Uncollectible Accounts (credit)

At the moment of the write-off as the expenses were before recognized we only use the Allowance for Uncollectible Accounts (Debit) with Accounts Receivable (Credit), with this we are recognizing the uncollectible credit of the company.

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forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.