Question

The statement of financial position of Kingbird Inc. at December 31, 2019, includes the following:

Notes receivable		$305,000
Accounts receivable		282,100
Less: Allowance for doubtful accounts		(47,800	)		$539,300

Transactions in 2020 include the following:

1.

Accounts receivable of $146,600 were collected.

2.		Customer accounts of $39,600 were written off during the year.
3.		An additional $16,600 was received in payment of an account that was written off in 2020.
4.		At year end, Allowance for Doubtful Accounts was estimated to need a balance of $53,300. This estimate is based on an analysis of aged accounts receivable.

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.
	(To record accounts receivable)
	(To record collection)
4.

Answer 1

	Account Titles and Explanation	Debit	Credit
1	Cash	146600
	Accounts Receivable		146600
2	Allowance for Doubtful Accounts	39600
	Accounts Receivable		39600
3	Accounts Receivable	16600
	Allowance for Doubtful Accounts		16600
	(To record accounts receivable)
	Cash	16600
	Accounts Receivable		16600
	(To record collection)
4	Bad debts expense	28500		=53300-(47800-39600+16600)
	Allowance for Doubtful Accounts		28500