Journal Entries for Credit Losses At January 1, the Chesley Company had the following accounts on its books Accounts Receivable Allowance for Doubtful Accounts $255,000 Debit $13,600 Credit During the year, credit sales were $1,650,000 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, $5,800. Apr.29 Wrote off B. Bird's account, $1,500. Nov.15 Received $1,500 from B. Bird to pay a debt that had been written off April 29. This amount is not included in the $1,588,000 collections. Wrote off D. Finger's account, $4,300 In an adjusting entry, recorded the allowance for doubtful accounts at two percent of credit sales for the year Dec.5 Dec.31 Required a. Prepare 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. General Journal Date Description Debit Credit Dec.31 Dec.31 Jan.11 To write off J. Smith's account Apr.29 To write off B. Bird's account. Nov.15 To reinstate B. Bird's account. Nov.15 To record collection from B. Bird Dec.5 To write-off D. Finger's account. Dec.31 To record allowance at 2 percent of credit sales. b. Do not use negative signs with your answers Accounts Receivable Less: Allowance for Doubtful Accounts