Hello,

We are working on Bad Debt Allowances and all of that good stuff. There is an IS, BS and SCF as well as foot notes. Here is the problem:

I. Receivables, etc. (24 points)

1. What journal entries did Steinway record that explain the change in gross accounts receivable and the allowance for bad debts in 2012? Assume all sales were on credit and please record a separate entry for recoveries. (15 points)

The BS shows AR for 2011 and 2012 with the net of allowance of bad debt. I added them to their respective balances and figured out the beginning and ending balances. One of the documents on this site shows that the student created a T Account but it doesnt make sense to me. Think you can help?