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During the current year, Robby's Camera Shop had sales revenue of $154,000, of which $58,000 was on credit. At the start of the current year,
During the current year, Robby's Camera Shop had sales revenue of $154,000, of which $58,000 was on credit. At the start of the current year, Accounts Receivable showed a $22,000 debit balance, and the Allowance for Doubtful Accounts showed a $900 credit balance. Collections of accounts receivable during the current year amounted to $52,000. Data during the current year follows: a. On December 31 an Account Receivable (J. Doe) of $1,900 from a prior year was determined to be uncollectible; therefore, it was written off immediately as a bad debt. b. On December 31, on the basis of experience, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2.5 percent of credit sales for the year, Required: 1. Prepare the required journal entries for the two items on December 31, end of the accounting period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet On December 31, an Account Receivable (J. Doe) of $1,900 from a prior year was determined to be uncollectible; therefore, it was written off immediately as a bad debt. Note: Enter debits before credits Date General Journal Debit Credit Dec. 31 Bad debt expense 26,100 Accounts receivable (J. Doe) 26,100
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