Blackhorse Productions, Inc. used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,350. The account had an unadjusted credit balance of $10,000 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. b) Later, an account receivable for $1,000 was determined to be uncollectible and was written off. Record the end-of-period adjustment for bad debts under the aging of accounts receivable method. Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,000.

Question

Brice Leonard

Business

19 June, 21:24

Blackhorse Productions, Inc. used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,350. The account had an unadjusted credit balance of $10,000 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. b) Later, an account receivable for $1,000 was determined to be uncollectible and was written off. Record the end-of-period adjustment for bad debts under the aging of accounts receivable method. Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,000.

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Answers (1)

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Hugh Barton · Answer 1

The required entries are plot in the following explanation.

Explanation:

(a)

Debit Bad Debt Expense 9,350

Credit Allowance for Doubtful Accounts 9,350

[19,350 - 10,000]

(b)

Debit Allowance for Doubtful Accounts 1,000

Credit Accounts Receivable 1,000