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	$7,200	Credit
During the year, credit sales were:	$851,000
and collections on account were:	$794,000

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

Jan.11	Wrote off J. Wolf's account,	$3,200
Apr.29	Wrote off B. Avery's account,	$1,400
Nov.15	Received $1,400 from B. Avery, to pay a debt that had been written off on
	April 29, in final settlement of the account written off on April 29.
	This amount is not included in the $794,000 collections.
Dec.05	Wrote off D. Wright's account,	$2,500
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 (including the credit balances) and the Allowance for Doubtful Accounts appear on the December 31 balance sheet.

a.

General Journal
Date	Description	Debit	Credit
Dec.31	Answer	Answer	Answer
	Answer	Answer	Answer
	To record sales revenue for the year.
Dec.31	Answer	Answer	Answer
	Answer	Answer	Answer
	To record collections on account for the year.
Jan.11	Answer	Answer	Answer
	Answer	Answer	Answer
	To write off J. Wolf's account.
Apr.29	Answer	Answer	Answer
	Answer	Answer	Answer
	To write off B. Avery's account.
Nov.15	Answer	Answer	Answer
	Answer	Answer	Answer
	To reinstate B. Avery's account for partial recovery.
Nov.15	Answer	Answer	Answer
	Answer	Answer	Answer
	To record collection from B. Avery.
Dec.05	Answer	Answer	Answer
	Answer	Answer	Answer
	To write-off D. Wright's account.
Dec.31	Answer	Answer	Answer
	Answer	Answer	Answer
	To record allowance for doubtful accounts.

b.

	Answer	Answer
	Answer	Answer
		Answer