Question

Journal Entries for Credit Losses At the beginning of the year, Whitney Company had the following accounts on its books: Accounts Receivable $142,000 Debit Allowance for Doubtful Accounts $9,900 Credit During the year, credit sales were: $1,193,000 and collections on account were: $1,170,000 The following transactions, among others, occurred during the year: $3,800 $2,600 Feb.17 Wrote off R. Lowell's account, May.28 Wrote off G. Boyd's account, Oct.13 Received $800 from G. Boyd, who is in bankruptcy proceedings, in final settlement of the account written off on May 28. This amount is not included in the $1,170,000 collections. Dec.15 Wrote off K. Marshall's account, Dec.31 In an adjusting entry, recorded the allowance for doubtful accounts at of credit sales for the year. $1,700 0.8%

Answer 1

credit Answer: a) Journal entries Date l e particulars THE Debit Dec 31 Accounts Receivable Ale or $1193000 To sales Revenue feing record sales revenue for He year cash ale 2170, e To Accounts Receivable | Being, record collections on account $1,193,000 $1170 for the year ] $3,800 $3800 $2,600 $2600 $800 $800 Feb-17) Allowance for Doubtful accounts or To Accounts Receivable RLowell Leing write off- R- Lowell's account] May 28 Allowance for Doubt ted Ale or To Accounts Receivable-G. Body's Being write off G. Boyd's account] boct 13 Accounts Receivable- G. Boyd's Age or - To Allowance for Doubtful Ale Being G. Boyd's account for partial recovery] octis cash ale Do 6. TO Accounts Receivable-G Boyle Being record Collection from G. Boyds Dec 15 Allowance for doubtful account or le To Accounts Receivable - K. Marshall Being write oft k MQyshal's account Deca Rad debt Expense Ale ($1,193,000K0.83.]Or To Allocazuce for doubt fel de Being allowance for doubtful account? b) Balance sheet (partial) Dec 31. $800 $800 1$ 1.700 | $1700 $9544 $9544 Accounts Receivable $156900 Les Allowance for Doubtful Accounka K 13.944) Accounts Receivable $ 142,956 Accounts Receivable - $142,000+$1193000 - 1,170000-$3800-$2,600 -$1700 = $156900 Allowance for Doubtful Accounts = $9900-$3800-$2600+$2.600-$1408 +$9544 = $13944