Question

At December 31, 2018, Monty Corp. Company had a credit balance of $19,700 in Allowance for Doubtful Accounts. During 2019, Monty Corp. wrote off accounts totaling $11,800. One of those accounts ($2,100) was later collected. At December 31, 2019, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $25,200. Prepare journal entries to record the 2019 transactions of Monty Corp. Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

The journal entries are shown below.

Step-by-step explanation:

The journal entries are as follows

a. Allowance for Doubtful Accounts $11,800

To Accounts Receivable $11,800

(Being the write off amount is recorded)

b. Accounts Receivable $2,100

To Allowance for Doubtful Accounts $2,100

(Being the allowance for doubtful account is recorded)

c. Cash $2,100

To Accounts Receivable $2,100

(Being the cash collected is recorded)

d. Bad Debt Expense $15,200

To Allowance for Doubtful Accounts $15,200

(being the bad debt expense is recorded)

The computation is shown below:

= $25,200 - $19,700 - $11,800 + $2,100

= $15,200