Exercise 9-5 At December 31, 2016, Finzelberg Company had a credit balance of $1

Question

Exercise 9-5

At December 31, 2016, Finzelberg Company had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2017, Finzelberg wrote off accounts totaling $11,000. One of those accounts ($1,800) was later collected. At December 31, 2017, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $19,000.

Prepare journal entries to record the 2017 transactions of Finzelberg Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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)

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)

Explanation / Answer

Journal Entries S.No. Particular Dr. Cr. 1 Allowance for doubtful debt A/c Dr $11,000                       to Account Receivable A/c $11,000 2 Account Receivable A/c Dr. $1,800           to Allowance for doubtful debt $1,800 3 Cash A/c Dr. $1,800                  to Account Receivable $1,800 4 Bad debt A/c Dr. 13200            to Allowance for doubtful debt 13200 W.Note Total Credit balance in allowance 15000 Less: Write off 11000 Add: Amount collected 1800 5800 Required 19000 Less 5800 13200

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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