Question

and recovery. E8.7 (LO 2) At December 31, 2019. Blanda Company had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2020, Blanda wrote off accounts totaling $11,000. One of those accounts ($1,800) was later collected. At December 31, 2020, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $19,000. Instructions Prepare journal entries to record the 2020 transactions of Blanda Company

Answer 1

E8.7

Date	Account title and explanation	Debit	Credit
2020	Allowance for doubtful accounts	11,000
	Accounts receivable		11,000
	(Write off)
	Accounts receivable	1,800
	Allowance for doubtful accounts		1,800
	(To reinstate accounts previously written off)
	Cash	1,800
	Accounts receivable		1,800
	(To record the collection)
	Bad debt expense (19,000 -(15,000-11,000+1,800))	13,200
	Allowance for doubtful accounts		13,200
	(To record the bad debt expense of the year)

E8.8

Date	Account title and explanation	Debit	Credit
Dec. 31, 2020	Bad debt expense (450,000x2%)	9,000
	Allowance for doubtful accounts		9,000
	(To record the estimated uncollectibles)
May 11, 2021	Allowance for doubtful accounts	1,100
	Accounts receivable		1,100
	(Write off)
June. 12, 2021	Accounts receivable	1,100
	Allowance for doubtful accounts		1,100
	(To reinstate accounts previously written off)
	Cash	1,100
	Accounts receivable		1,100
	(To record the collection)