Journal Entries for Credit Losses At the beginning of the year, Portal Company had the following accounts on its books: Accounts Receivable Allowance for Doubtful Accounts $140,000 Debit $8,000 Credit During the year, credit sales were: $1,173,000 and collections on account were: $1,175,000 The following transactions, among others, occurred during the year: Feb.17 Wrote off R. Lowell's account, $4,000 May.28 Wrote off G. Boyd's account, $3,400 Oct.13 Received $600 from G. Boyd, who is in bankruptcy proceedings, in final settlement of the account written off on May 28. This amount is not included in the $1,175,000 collections. Dec.15 Wrote off K. Marshall's account. $1,600 Dec.31 In an adjusting entry, recorded the allowance for doubtful accounts at of credit sales for the year. 0.9% 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. Date Dec.31 General Journal Description Debit Credit 175,000 x $ 0 0 173,000 x Accounts Receivable Sales Revenue To record sales revenue for the year. Dec.31 Cash Accounts Receivable 4 0 x 0 0 0%