Question

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.)

Answer 1

Answer:. ............$

1. Bad debt Dr. 11.0000

Account receivable Or. 11.000

Narration: Bad debts writing off debtors

2. Cash/Bank. Dr 1800

Profit or loss Cr. 1800

Narration. Bad debt previously written off recovered

3. Profit or loss Dr 4000

Allowance for doubtful debts Cr

4000

Narration. Increase in provision for doubtful debts.