At December 31 finzelberg company had a credit balance of 17400 in allowance for

Question

At December 31 finzelberg company had a credit balance of 17400 in allowance for doubtful accounts. During 2017 finzelberg wrote off accounts totaling 12000. One of those accounts 1800 was later collected. At December 31 2017 an aging schedule indicated that the balance for doubtful accounts be 30000.

Prepare journal entries to record 2017 transactions of finzelberg company.

Weygandt, Accounting Principles, 12e Gradebook ORION Downloadable eTextbook ent Prepare journal entries to record the 2017 transactions of Finzelberg Company. (Credit acco 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) 2200 2010 John Wiley&Sona; Ins. All Rights Reserved. A Division of 2ohn Wiley.a.Sons Jns

Explanation / Answer

At December 31, 2017, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $30,000.
Balance before adjustment =17,400 - 12,000 + 1,800 = $7,200

Bad debt expense =30,000 - 7,200 = $22,800

Accounting Titles and Explanations Debit Credit Allowance for Doubtful Accounts 12000 Accounts Receivable 12000 (To record amount written off) Accounts Receivable 1800 Allowance for Doubtfull Accounts 1800 (To reverse write-off) Cash 1800 Accounts Receivable 1800 (To record collection of writeoff) Bad Debt Expense 22800 Allowance for Doubtful Accounts 22800 (To record estimated bad debts for the year)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.