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At the end of 2013, Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that it’s Allowance for Doubtful Accounts should be $20,250. The account had an unadjusted credit balance of $11,000 at December 31, 2013.
Can you please help in preparing a journal entry?
a. The appropriate bad debt adjustment was recorded for the year 2013.
b. On January 31, 2014, an account receivable for $1,100 from March 2013 was determined to be uncollectible and was written off.
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