Question

On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,451, Blossom Company estimates that 11% of its accounts receivable balance of $78,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Blossom Company determined that B. Jared's account was uncollectible and wrote off $1,260. On June 12, 2022, Jared paid the amount previously written off. 

Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) 

Answer 1

I credit 2021 $10,031 $1260 | Answer? Journal Entry | Date particulars Debit Dec 31 bad debts expense All dr $10,031 (78000 x1l'c.)+1451] - TO Allowance for doubtful deby Being to record the bad deby expense) Mayıl Allowance for Doubtful debts Alcdr $1,260 2022 To Accounty receivable Being to recosd Accounts become bach and uncollectible) June 12 Accounts receivable Al dr 2022 h To Allowance for Doubtful debly Being to recold reinstate the account Previously written oft) (cash Ale ar TO Accounts receivable Account Being to recold Amount received 31260 $ 1260 $1260 $1260