Journal Entries for Credit Losses At January 1, the Blake Company had the following accounts on its books Accounts Receivable $130,000 Debut Allowance for Doubtful Accounts $7,000 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 57000 $2,000 Jan 11 Wrote off). Woll's account Apr 29 Wrote off. Avery's account, Nov 15 Received 51,000 from B. Avery to pay a debt that had been written off April 20. This amount is not included in the $799,000 collections Dec 05 Wote off. Wright's account Dec 31 in an adjusting entry recorded the allowance for doubtful accounts at of credit sales for the year $2.250 18 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. Debit 850,000 $ 0 Credit 0 $ 850,000 . 0 > 794,000 0 794,000 > 3,000 0 3,000 . 1,000 0 1,000 . 1,000 0 1,000 . 2,250 0 2,250 8,500 0 8,500 R b. Accounts Receivable Less: Allowance for Doubtful Accounts 179,750 X 9,250 171.750 x $ $ IN