Answer:
JOURNAL ENTRIES related Accounts Receivables
2021
12 June Debit Accounts receivable $37,400 Credit Service Revenue $37,400
17 Sep Debit Bank $22,000 Credit Accounts receivables $22,000
31 Dec Debit provision for doubtful debts adjustment (expense) $6,930 Credit Provision for bad debts $6930
2022
4 Mar Debit Accounts receivable $ 52400, Credit Service revenue $52,400
20 May Debit Bank $10,000 Credit Accounts receivables $10,000
19 Oct Debit Bank $42000 Credit Accounts receivables $42,000
31 Dec Provision for bad debts adjustment $180 Credit provision for bad debt $180
Explanation:
2021
provision for bad debts beginning = $0
adjustment = $6930
closing (15400 *0.45) =$6930
an increase in provision or allowance in doubtful debts is an expense
2022
Provision for bad debts opening $6930
Adjustment $180
closing (15800*0.45) $7110
