At the end of 2014, Blackberry Hill Productions, Inc., used the aging of accounts receivable method to

Question:

At the end of 2014, Blackberry Hill Productions, Inc., used the aging of method to estimate that its Allowance for Doubtful Accounts should be $19,750. The account had an unadjusted credit balance of $10,000 at December 31, 2014.
Required:
Prepare journal entries for each transaction.
a. The appropriate bad debt adjustment was recorded for the year 2014.
b. On January 31, 2015, an account receivable for $1,000 from March 2014 was determined to be uncollectable and was written off.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...