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Allowance for Bad Debts Beg Bal Bad Debts Expense Reference Date Accounts and Explanation Debit Credit 2024 Dec. 31 Bad Debts Expense (Adj.) Allowance for

Allowance for Bad Debts Beg Bal Bad Debts Expense Reference Date Accounts and Explanation Debit Credit 2024 Dec. 31 Bad Debts Expense (Adj.) Allowance for Bad Debts Dec. 31 Income Summary (Clos.) Bad Debts Expense 12,000 12,000 12,000 12,000 2025 Jan. 17 Accounts Receivable-Mark Johnson 1,200 Sales Revenue. 1,200 Jun 29 Allowance for Bad Debts 1,200 Accounts Receivable-Mark Johnson 1,200 Aug 6 Accounts Receivable-Mark Johnson 1,200 Allowance for Bad Debts 1,200 Aug 6 Cash 1,200 Accounts Receivable-Mark Johnson 1,200 Dec. 31 Allowance for Bad Debts 2,600 (W/O) Accounts Receivable-Bob Keffer 1,300 Dec. 31 Bad Debts Expense 16,200 (Adj.) Allowance for Bad Debts 16,200 Dec. 31 Income Summary 16,200 (Clos) Bad Debts Expense 16,200 Glitter Watches completed the following selected transactions during 2024 and 2025 (Click the icon to view the transactions.) Read the requirements Requirement 1. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you, assuming the accounts begin with a zero balance. Record the transactions in the general journal (omit explanations), and post to the two T-accounts (Record debits first, then credits Exclude explanations from journal entries. Abbreviations used. Adj = Adjusting entry, Clos Closing entry, W/O Write-off) Begin by recording the 2024 transactions in the general journal Dec. 31 Estimated that bad debts expense for the year was 3% of credit sales of $400,000 and recorded that amount as expense. The company uses the allowance method. Dec 31 Estimated that bad debts expense for the year was 3% of credit sales of $400,000 and recorded that amount as expense. The company uses the allowance method. Date Accounts and Explanation 2024 Dec. 31 Bad Debts Expense. (Adj.) Allowance for Bad Debts Dec. 31: Made the closing entry for bad debts expense. Date 2024 Accounts and Explanation Dec. 31 Income Summary (Clos) Bad Debts Expense Debit Credit 12,000 12,000 Debit Credit 12,000 12,000 Jan. 17: Sold inventory to Mark Johnson, $1,200, on account. Ignore Cost of Goods Sold. Date Accounts and Explanation 2025 Jan. 17 Accounts Receivable-Mark Johnson Sales Revenue Debit Credit 1,200 1,200 Jun. 29 Wrote off Mark Johnson's account as uncollectible after repeated efforts to collect from him. Date 2025 Accounts and Explanation Debit Credit Jun 29 Allowance for Bad Debts 1,200 Accounts Receivable-Mark Johnson 1,200 Docend 1300 from Mark Inhnenn alone with a Intter analnaising for hinn en lote Drinetatud Aug. 6: Received $1,200 from Mark Johnson, along with a letter apologizing for being so late. Reinstated Johnson's account in full and recorded the cash receipt. Start by recording the entry to reinstate Johnson's account Date 2025 Accounts and Explanation Aug 6 Accounts Receivable-Mark Johnson Allowance for Bad Debts Now record the $1,200 received from Mark Johnson. Debit Credit 1,200 1,200 Date Accounts and Explanation Debit Credit 2025 Aug 6 Cash 1,200 Accounts Receivable-Mark Johnson 1,200 Dec. 31. Made a compound entry to write off the following accounts as uncollectible Bob Keffer, $1,300, Marie Cuty, $1,1 and Rich Alton, $200 Date 2025 Accounts and Explanation Debit Credit Dec. 31 (W/O) Allowance for Bad Debts 2,600 Accounts Receivable-Bob Keffer 1,300 Accounts Receivable-Marie Cuty 1,100 Accounts Receivable-Rich Alton 200 Dec. 31 Estimated that bad debts expense for the year was 3% on credit sales of $540,000 and recorded the expense Date Accounts and Explanation 2025 Dec 31 (Adj) Bad Debts Expense Allowance for Bad Debts: Debit Credit 16,200 16,200 Dec. 31: Made the closing entry for bad debts expense. Date 2025 Accounts and Explanation Dec. 31 Income Summary (Clos.) Bad Debts Expense Debit Credit 16,200 16,200

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