Journal Entries for Credit Losses At January 1, the Blake Company had the following accounts on its books: Accounts Receivable $130,000 Debit Allowance for Doubtful Accounts 37.000 Credit During the year, credit sales were $850,000 and collections on account were $794,000. The following transactions, among others, occurred during the year Jan. 11 Wrote off). Woll's account, $3,000 Apr 29 wrote olf B. Avery's account $2,000 Nov.15 Received 51,000 from B. Avery to pay a debt that had been written off April 29. This amount is not included in the $794,000 collections Dec 05 Wrote off D. Wright's account $2.250 Dec 31 In an adjusting entry, recorded the allowance for doubtfut accounts at 1 of credit sales for the year Required a. Prepare the journal entries to record the credit sales, the collections on account, the transactions, and the adjustment. b. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on the December 31 balance sheet. a. Prepare the journal entries to record the credit sales, the collections on account, b. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear Debit 850,000 $ 0 Credit 0 850,000 794,000 0 794,000 3,000 0 0 3,000 0 2,000 0 2,000 General Journal Date Description Dec.31 Accounts Receivable a $ Sales Revenue To record sales revenue for the year. Dec.31 Cash Accounts Receivable To record collections on account for the year. Jan.11 Allowance for Doubtful Accounts Accounts Receivable - J. Wolf To write off). Wolf's account. Apr 29 Allowance for Doubtful Accounts Accounts Receivable - B. Avery To write off B. Avery's account. Nov.15 Accounts Receivable - B. Avery Allowance for Doubtful Accounts To reinstate B. Avery's account. Nov.15 Cash Accounts Receivable - B. Avery To record collection from B. Avery. Dec 05 Allowance for Doubtful Accounts e Accounts Receivable - D. Wright To write-off D. Wright's account. Dec.31 Bad Debts Expense Allowance for Doubtful Accounts To record allowance for doubtful accounts. 4) 1,000 0 0 1,000 1,000 0 1,000 2,250 0 0 2,250 8,500 0 0 8,500 b. Accounts Receivable 972.750 X VU b. $$ Accounts Receivable Less: Allowance for Doubtful Accounts 972,750 X 9,250 129,900 x $ Check