Question

Blackhorse Productions, Inc. used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $20,150. 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. D. Later, an account receivable for $1.200 was determined to be uncollectible and was written oft View transaction list Journal entry worksheet 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

Answer
Explanation	Debit	Credit
a) Bad debts A\c Dr ( 20150-12000)	$     8,150
To Allowance for Doubtful Accounts		$     8,150
( Estimated Bad debts )
b) Allowance for doubtful Accounts Dr	$     1,200
To Accounts Receivable A\c		$     1,200
(Amount not receivable transferred to allowance a\c)
Bad debts A\c Dr	$     1,200
To Allowance for Doubtful Accounts		$     1,200
( Amount Written Off)