Journal Entries for Credit Losses At January 1, the Griffin Company had the foll

Question

Journal Entries for Credit Losses At January 1, the Griffin Company had the following accounts on its books:

During the year, credit sales were $810,000 and collections on account were $794,000. The following transactions, among others, occurred during the year:

Required

a. Prepare the journal entries to record the credit sales, the collections on account, the transactions, and the adjustment.

Accounts Receivable $130,000 Debit Allowance for Doubtful Accounts $7,000 Credit Date Description Debit Credit Dec.31 Accounts Receivable $ 810,000 Sales Revenue 810,000 To record sales revenue for the year. Dec.3 Cash 794,000 Accounts Receivable 94,000V To record collections on account for the year. Jan.11 Allowance for Doubtful Accounts 3,000 Accounts Receivable-J. Wolf 3,000 To write off J. Wolf's account. Apr.29 Allowance for Doubtful Accounts 1,000 Accounts Receivable-B. Avery $ ,000 To write off B. Avery's account. Nov.15 Accounts Receivable-B. Avery ,000 Allowance for Doubtful Accounts ,000 To reinstate B. Avery's account. Nov.15 Cash ,000 Accounts Receivable-B Avery ,000 To record collection from B. Avery

Explanation / Answer

Accounts receivable at end =Beginning+credit sales-collections -write off

= 130000+810000-794000-[3000+2250+1000]

= 130000+810000-794000-6250

= 139750

Accounts receivable 139750 Allowance for doubtful account 9850 129900

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