Based on the above facts, the bad debt expense for 2021 for Fabeck Finishing Corporation is $12.
The bad debt expense represents some account receivables recognized as uncollectible.
Under the allowance method, the bad debt expense is the difference between the debit and credit entries in the Allowance for Uncollectible Accounts.
Under the direct write-off method, the bad debt expense is the actual bad debt incurred when some specific receivables are deemed uncollectible and therefore written off.
2020:
Account Titles Debit Credit
Accounts receivable $2
Bad Debts Expense $27
Balance $25
2021:
Balance $25
Accounts receivable $12
Bad Debts Expense $12
Balance $25
Thus, Fabeck Finishing Corporation will recognize a bad debt expense of $12 for 2021.
Learn more about bad debt expenses under the allowance method at https://brainly.com/question/14191260
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