Journal Entries for Credit Losses At January 1, the Chesley Company had the following accounts on its books: Accounts Receivable Allowance for Doubtful Accounts During the year, credit sales were: $262,000 Debit $15,600 Credit $1,642,000 and collections on account were: $1,590,000 The following transactions, among others, occurred during the year: Jan.11 Wrote off J. Smith's account, $5,800 Apr 29 Wrote off B. Bird's account, $2,200 Nov.15 Received $1,200 from B. Bird, to pay a debt that had been written off on April 29, This amount is not included in the $1,590,000 collections. Dec.05 Wrote off D. Finger's account, $4,500 Dec 31 In an adjusting entry, recorded the allowance for doubtful accounts at of credit sales for the year. 1% Required a. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment. b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet. Date Dec.31 General Journal Description Dec.31 To record credit sales revenue for the year. Feb.17 To record collections on account for the year. To write off J. Smith's account. May.28 To write off B. Bird's account. Oct.13 Debit 4 4 4 Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 To reinstate B. Bird's account for partial recovery. Oct.13 4 0 0 To record collection from B. Bird. Dec.15 To write-off D. Finger's account. Dec.31 To record allowance for doubtful accounts. 4 4 O 0 0 0 0 0 0 0