Answer:
A.Dr Bad Debt Expense 7,850
Cr Allowance for Doubtful Accounts 7,850
B.Dr Allowance for Doubtful Accounts 1,000
Cr Accounts Receivable 1,000
Explanation:
Preparation of the Journal entries for Blackhorse Productions,
A.Since we were that the company used the aging of accounts receivable method to help them estimate that Allowance for Doubtful Accounts should be the amount of $19,850 in which the account had an unadjusted credit balance of the amount $12,000 this means that the transaction will be recorded as:
Dr Bad Debt Expense 7,850
Cr Allowance for Doubtful Accounts 7,850
[19,850 - 12,000]
B. Since the company later had an account receivable for the amount of $1,000 whichb was determined to be uncollectible and was written off this means that the transaction will be recorded as:
Dr Allowance for Doubtful Accounts 1,000
Cr Accounts Receivable 1,000
