Journal Entries for Credit Losses At January 1, the Chesley Company had the following accounts on its books:

Accounts Receivable	$262,000	Debit
Allowance for Doubtful Accounts	$14,600	Credit
During the year, credit sales were:	$1,622,000
and collections on account were:	$1,588,000

The following transactions, among others, occurred during the year:

Jan.11	Wrote off J. Smith's account,	$6,600
Apr.29	Wrote off B. Bird's account,	$3,000
Nov.15	Received $2,000 from B. Bird, to pay a debt that had been
	written off on April 29.
	This amount is not included in the $1,588,000 collections.
Dec.05	Wrote off D. Finger's account,	$5,300
Dec.31	In an adjusting entry, recorded the allowance for doubtful accounts at	1%
	of credit sales for the year.

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. a.

General Journal
Date	Description	Debit	Credit
Dec.31	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record credit sales revenue for the year.
Dec.31	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record collections on account for the year.
Feb.11	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write off J. Smith's account.
MAy.29	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write off B. Bird's account.
Oct.13	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To reinstate B. Bird's account for partial recovery.
Oct.13	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record collection from B. Bird.
Dec.15	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write-off D. Finger's account.
Dec.31	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. BirdAccounts Receivable - D. FingerAccounts Receivable - J. SmithAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record allowance for doubtful accounts.

b. Do not use negative signs with your answers.

	Accounts Receivable	Answer
	Less: Allowance for Doubtful Accounts	Answer
		Answer

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