At December 31, 2021, Blossom Company had a credit balance of $19,100 in Allowance for Doubtful Accounts. During 2022, Blossom wrote off accounts totaling $14,500. One of those accounts of $3,400 was later collected. At December 31, 2022, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $24,700. Prepare journal entries to record the 2022 transactions of Blossom Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record amount written off enter a debit amount enter a credit amount enter an account title to record amount written off enter a debit amount enter a credit amount (To record amount written off) enter an account title to reverse write-off enter a debit amount enter a credit amount enter an account title to reverse write-off enter a debit amount enter a credit amount (To reverse write-off) enter an account title to record collection of writeoff enter a debit amount enter a credit amount enter an account title to record collection of writeoff enter a debit amount enter a credit amount (To record collection of writeoff) enter an account title to record estimated bad debts for the year enter a debit amount enter a credit amount enter an account title to record estimated bad debts for the year enter a debit amount enter a credit amount (To record estimated bad debts for the year)
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
At December 31, 2021, Blossom Company had a credit balance of $19,100 in Allowance for Doubtful Accounts. During 2022, Blossom wrote off accounts totaling $14,500. One of those accounts of $3,400 was later collected. At December 31, 2022, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $24,700.
Prepare
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Account Titles and Explanation
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Debit
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Credit
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|---|---|---|
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enter an account title to record amount written off
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enter a debit amount
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enter a credit amount
|
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enter an account title to record amount written off
|
enter a debit amount
|
enter a credit amount
|
|
(To record amount written off)
|
||
|
enter an account title to reverse write-off
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to reverse write-off
|
enter a debit amount
|
enter a credit amount
|
|
(To reverse write-off)
|
||
|
enter an account title to record collection of writeoff
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record collection of writeoff
|
enter a debit amount
|
enter a credit amount
|
|
(To record collection of writeoff)
|
||
|
enter an account title to record estimated
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record estimated bad debts for the year
|
enter a debit amount
|
enter a credit amount
|
|
(To record estimated bad debts for the year)
|
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