Journal Entries for Credit Losses At thebeginning of the year, Whitney Company had the following accountson its books:

Accounts Receivable	$154,000	Debit
Allowance for Doubtful Accounts	$7,900	Credit
During the year, credit sales were:	$1,133,000
and collections on account were:	$1,120,000

The following transactions, among others, occurred during theyear:

Feb.17	Wrote off R. Lowell's account,	$3,300
May.28	Wrote off G. Boyd's account,	$2,100
Oct.13	Received $500 from G. Boyd, who is in bankruptcyproceedings,
	in final settlement of the account written off on May 28.
	This amount is not included in the $1,120,000 collections.
Dec.15	Wrote off K. Marshall's account,	$1,400
Dec.31	In an adjusting entry, recorded the allowance for doubtfulaccounts at	0.5%
	of credit sales for the year.

Required

a. Prepare journal entries to record the credit sales, thecollections on account, and the preceding transactions andadjustment.
b. Show how Accounts Receivable and the Allowance for DoubtfulAccounts would appear on the December 31 balance sheet.

a.

General Journal
Date	Description	Debit	Credit
Dec.31	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record sales revenue for the year.
Dec.31	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record collections on account for the year.
Feb.17	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write off R. Lowell's account.
May.28	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write off G. Boyd's account.
Oct.13	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To reinstate G. Boyd's account for partial recovery.
Oct.13	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record collection from G. Boyd.
Dec.15	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write-off K. Marshall's account.
Dec.31	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. BoydAccountsReceivable - K. MarshallAccounts Receivable - R. LowellAllowancefor Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record allowance for doubtful accounts.

b.

	AnswerAccounts ReceivableLess: Allowance for DoubtfulAccounts	Answer
	AnswerAccounts ReceivableLess: Allowance for DoubtfulAccounts	Answer
		Answer