Journal Entries for Credit Losses At the beginning of the year, Whitney Company had the following accounts on its books: Accounts Receivable $142,000 Debit Allowance for Doubtful Accounts $9,900 Credit During the year, credit sales were: $1,193,000 and collections on account were: $1,170,000 The following transactions, among others, occurred during the year: $3,800 $2,600 Feb.17 Wrote off R. Lowell's account, May.28 Wrote off G. Boyd's account, Oct.13 Received $800 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 $1,170,000 collections. Dec.15 Wrote off K. Marshall's account, Dec.31 In an adjusting entry, recorded the allowance for doubtful accounts at of credit sales for the year. $1,700 0.8% 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. General Journal Description Debit Credit Date Dec.31 To record sales revenue for the year. Dec.31 To record collections on account for the year. Feb. 17 To write off R. Lowell's account. May.28 To write off G. Boyd's account. Oct.13 To reinstate G. Boyd's account for partial recovery. Oct.13 To reinstate G. Boyd's account for partial recovery. Oct.13 To record collection from G. Boyd. Dec.15 To write-off K. Marshall's account. Dec.31 To record allowance for doubtful accounts