Question 5 Partially correct Mark 0.91 out of 1,00 P Flag question Edit question Journal Entries for Credit Losses At January 1, the Griffin Company had the following accounts on its books: Accounts Receivable $127,000 Debit Allowance for Doubtful Accounts $7,800 Credit During the year, credit sales were: $821,000 and collections on account were: $795,000 $2,900 $1,100 The following transactions, among others, occurred during the year: Jan.11 Wrote off. Wolf's account, Apr.29 Wrote off B. Avery's account, Nov.15 Received 1,100 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 $795,000 collections. Dec.05 Wrote off D. Wright's account Dec.31 in an adjusting entry, recorded the allowance for doubtful accounts at of credit sales for the year. $2.250 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. $ Debit 821,000 0 $ Credit 0 821,000 795,000 0 0 795,000 2,900 0 0 2,900 1,100 O 0 1,100 General Journal Date Description Dec.31 Accounts Receivable Sales Revenue To record sales revenue for the year. Dec.31 Cash Accounts Receivable To record collections on account for the year. Jan.11 Allowance for Doubtful Accounts Accounts Receivable - J. Wolf To write off J. Wolf's account. Apr.29 Allowance for Doubtful Accounts Accounts Receivable - B. Avery To write off B. Avery's account. Nov.15 Accounts Receivable - B. Avery Allowance for Doubtful Accounts To reinstate B. Avery's account for partial recovery. Nov.15 Cash Accounts Receivable - B. Avery To record collection from B. Avery. Dec.05 Allowance for Doubtful Accounts Accounts Receivable - D. Wright To write-off D. Wright's account. Dec.31 Bad Debts Expense Allowance for Doubtful Accounts To record allowance for doubtful accounts. 1,110 x 0 0 1,110 x 1,100 0 0 1,100 2,250 0 0 2,250 0 8,210 0 8,210 0 1,110 x 0 1.110 X 1,100 0 1,100 Nov.15 Accounts Receivable - B. Avery Allowance for Doubtful Accounts To reinstate B. Avery's account for partial recovery. Nov. 15 Cash Accounts Receivable - B. Avery To record collection from B. Avery. Dec. 05 Allowance for Doubtful Accounts Accounts Receivable - D. Wright To write-off D. Wright's account. Dec. 31 Bad Debts Expense Allowance for Doubtful Accounts To record allowance for doubtful accounts. 0 2,250 0 2,250 8,210 o 07 8,210 Accounts Receivable Less: Allowance for Doubtful Accounts
