Question

The December 31, 2021, balance sheet of the Metlock, Inc. had Accounts Receivable of $650,000 and a credit balance in Allowance for Doubtful Accounts of $31,000. During 2022, the following transactions occurred: sales on account $1,599,000; sales returns and allowances, $147,000;collections from customers, $1,253,000; accounts written off, $37,000; previously written off accounts of $9,000 were collected. Journalize the 2022 transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record credit sales) (To record credits to customers)

Answer 1

Journal entry

No	General Journal	Debit	Credit
1	Account receivable	1599000
	Sales revenue		1599000
	(To record credit sales)
2	Sales return and allowance	147000
	Account receivable		147000
	(To record return)
3	Cash	1253000
	Account receivable		1253000
	(To record collection)
4	Allowance for doubtful accounts	37000
	Account receivable		37000
	(To record write off)
5	Account receivable	9000
	Allowance for doubtful accounts		9000
	(To record reinstated)
	Cash	9000
	Account receivable		9000
	(To record collection)

b) Adjusting entry

No	Account and explanation	Debit	Credit
Dec 31	Bad debt expense (812000*8%-3000)	61960
	Allowance for doubtful accounts		61960