Question

Please try to keep the same format!

Exercise 9-07 At December 31, 2019, Splish Company had a credit balance of $19,100 in Allowance for Doubtful Accounts. During 2020, Splish wrote off accounts totaling $11,100. One of those accounts ($2,900) was later collected. At December 31, 2020, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $29,900. Prepare journal entries to record the 2020 transactions of Splish Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record amount written off) (To reverse write-off) (To record collection of writeoff) (To record estimated bad debts for the year)

Answer 1

1)

Allowance for doubtful accounts ....debit $11,100

To Accounts receivable account....credit $11,100

(to record amount written off)

2)

Accounts receivable account...debit $2,900

Allowance for doubtful account...credit $2,900

(to reverse write off)

3)

Cash account..... debit $2,900

To Accounts receivable. credit $2,900

(Cash received)

4) At December 31, 2014, an aging schedule indicated that the balance in allowance for Doubtful accounts should be $29,900

$19,100 - $11,100 + $2,900 = $10,900 balance before adjustment.

So, $29,900 - $10,900 = $19,000

Bad debt expense account...debit $19,000

To Allowance for Doubtful accounts ..credit $19,000

(to record estimated bad debts for the year)