Question

Blackhorse Productions, Inc. used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,350. The account had an unadjusted credit balance of $10,000 at that time.Required:
Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)a)The appropriate bad debt adjustment was recorded.b)Later, an account receivable for $1,000 was determined to be uncollectible and was written off.Record the end-of-period adjustment for bad debts under the aging of accounts receivable method.Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,000.

Answer 1

Answer:

The required entries are plot in the following explanation.

Explanation:

(a)

Debit Bad Debt Expense 9,350

Credit Allowance for Doubtful Accounts 9,350

[19,350 - 10,000]

(b)

Debit Allowance for Doubtful Accounts 1,000

Credit Accounts Receivable 1,000