Question

10) Thatcher Company had a January 1, credit balance in its Allowance for Doubtful Accounts of $4,000 for the current year. The following transactions and events affected the Allowance for Doubtful Accounts during the current year:

Apr 15     Bean's account receivable of $2,700 was deemed uncollectible.

July 1       Cho paid the full amount of a previously written-off account receivable. This receivable of $1,300 had been written off in the prior year.

Dec 31     Bad debts expense of $4,500 was recorded.

Prepare the journal entries to record these transactions:

Date	Description	Post Ref	Debit	Credit
4/15
7/1
12/31

Answer 1

solution:

Journal Entries - Thatcher Company
Date	Particulars	Debit	Credit
15-Apr	Allowance for doubtful accounts Dr	$2,700.00
	To Accounts receivables		$2,700.00
	(To write off receivables)
1-Jul	Accounts receivables Dr	$1,300.00
	To Allowance for doubtful accounts		$1,300.00
	(To reinstate receivables)
1-Jul	Cash Dr	$1,300.00
	To Accounts receivables		$1,300.00
	(To record collection from customer)
31-Dec	Bad debts expense Dr	$4,500.00
	To Allowance for doubtful accounts		$4,500.00
	(To record bad debts expense)