Answer:
The full question is "The following information is available for Murphy Company Allowance for doubtful accounts at December 31, 2018 Credit sales during 2019 Accounts receivable deemed worthless and written off during 2019 $ 24,000 1,200,000 27.000 As a result of a review and aging of accounts receivable in early January 2018, it has been determined that an allowance for doubtful accounts of $16,000 is needed at December 31, 2018 What entry will Murphy make to record "bad debt expense" for the year ended December 31, 2017"
Journal Entry for the bad debt expenses
Date Account Title and Explanation Debit Credit
Dec 31 Bad Debt Expense $19,000
($16,000 + $3,000)
Allowance for Doubtful Accounts $19,000
(To record bad debt expense)
Workings
Allowance for Doubtful Account
Write off $27,000 $24,000 Beginning balance
Unadjusted balance $3,000
$19,000 Adjustment
$16,000 Ending balance
Bad Debt Expenses
Beginning balance $0
Adjustment $19,000
Ending balance $19,000