Question

1 On December 31, 2019 (at fiscal year end), CDE Company's Allowance for Doubtful Accounts had a debit balance of $1,000 on its unadjusted trial balanace.  CDE Company estimates that 10% of its  gross accounts receivable balance of $95,000 will become uncollectible. On March 31, 2020, CDECompany determined that Customer A’s account of $1200 was uncollectible. On April 8, 2020, Customer A paid the amount previously written off.
Based on the facts above, prepare any journal entry or entries that would necessary on  December 31, 2019:

2  On December 31, 2019 (at fiscal year end), CDE Company's Allowance for Doubtful Accounts had a debit balance of $1,000 on its unadjusted trial balanace.  CDE Company estimates that 10% of its  gross accounts receivable balance of $95,000 will become uncollectible. On March 31, 2020, CDE Company determined that Customer A’s account of $1200 was uncollectible. On April 8, 2020, Customer A paid the amount previously written off.
Based on the facts above, prepare any journal entry or entries that would necessary on  March 31, 2020:

Answer 1

Journal entries
S.no.	Accounts title and explanations			Debit $	Credit $
31.12.19	Bad debts expenses (95000*10%+1000)		10500
	Allowance for doubtful account			10500
	(for recognizing the bad debts expense)
31.03.20	Allowance for doubtful accounts		1200
	Accounts receivable				1200
	(for amount written off)