Question

Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Alllowance for Doubtful Accounts should be $19,700. The account had an unadjusted credit balance of $12,000 at that time Required: Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. The appropriate bad debt adjustment was recorded b. Later, an account receivable for $1,200 was determined to be uncollectible and was writtern off View transaction list Journal entry worksheet 2 Record the end-of-period adjustment for bad debts under the aging of accounts receivable method. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Credit Transaction General Journal a. Bad Debt Expense Allowance for doubtful accounts Debit $7,700.00 $7,700.00 (To Record end of period adjustment for bad debts) Note : Since there is a credit balance of $12,000 we need to provide extra $7700 as bad debt expense. ($19,700-$12,000) Credit Transaction General Journal Allowance for doubtful accounts Accounts Receivable Debit $ 1,200.00 b. $ 1,200.00 (To write off account receivable worth $1200)