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

Accounts Receivable	$130,000	Debit
Allowance for Doubtful Accounts	$7,000	Credit

During the year, credit sales were $810,000 and collections on account were $794,000. The following transactions, among others, occurred during the year:

Jan.11	Wrote off J. Wolf's account,	$3,000
Apr.29	Wrote off B. Avery's account,	$1,000
Nov.15	Received $1,000 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 doubtful 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.

Date Description Debit Credit Dec.31 Accounts Receivable $ 810,000 Sales Revenue 810,000 To record sales revenue for the year. Dec.3 Cash 794,000 Accounts Receivable 94,000V To record collections on account for the year. Jan.11 Allowance for Doubtful Accounts 3,000 Accounts Receivable-J. Wolf 3,000 To write off J. Wolf's account. Apr.29 Allowance for Doubtful Accounts 1,000 Accounts Receivable-B. Avery $ ,000 To write off B. Avery's account. Nov.15 Accounts Receivable-B. Avery ,000 Allowance for Doubtful Accounts ,000 To reinstate B. Avery's account. Nov.15 Cash ,000 Accounts Receivable-B Avery ,000 To record collection from B. Avery