Gorav Dental Group started 2013 with Accounts Receivable of $120,000 and an Allowance for Doubtful Accounts balance

Question:

Gorav Dental Group started 2013 with Accounts Receivable of $120,000 and an Allowance for Doubtful Accounts balance of $6,000. The following information relates to Gorav Dental’s 2013 operations:

a. Credit sales, $400,000.

b. Collections on account, $320,000.

c. Write-offs of un-collectibles, $15,000.

d. At December 31, the aging of accounts receivable showed that Gorav will probably not collect $5,000 of its accounts receivable.
Journalize Gorav’s 2013 transactions based on the information provided. Prepare a T-account for the Allowance for Doubtful Accounts to show your computation of Bad Debt Expense for the year.

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...