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9 April, 03:16

Prepare journal entries for each transaction listed. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) At the end of June, bad debt expense is estimated to be $15,000. In July, customer balances are written off in the amount of $7,500

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  1. 9 April, 03:42
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    Bad Debts (dr) ... to debtors (cr) = 15000

    Cash (dr) ... to debtors (cr) = 7500

    Explanation:

    Journal is the book of recording accounting transactions.

    It has following rules:

    Debit all assets, expenses, losses Credit all liabilities, incomes, gains

    June : bad debt expense is estimated to be $15,000

    Bad Debts A/c (debit) 15000

    to Debtors A/c (credit) 15000

    { ∵ bad debts is loss, debtors are asset }

    July : customer balances are written off in the amount of $7,500

    Cash A/c (debit) 7500

    to Debtors A/c (credit) 7500

    {∵ cash is asset, debtors are asset }
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