At December 31, 2021, Novak Company had a credit balance of $18,000 in Allowance for Doubtful Accounts. During 2022, Noval wrote off accounts totaling $13,300. One of those accounts of $3,200 was later collected. At December 31, 2022, an aging schedu indicated that the balance in Allowance for Doubtful Accounts should be $27,200. Prepare journal entries to record the 2022 transactions of Novak Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Allowance for Doubtful Accounts Accounts Receivable (To record amount written off) Accounts Receivable Allowance for Doubtful Accounts (To reverse write-off) Cash Accounts Receivable (To record collection of writeoff) Bad Debt Expense Allowance for Doubtful Accounts (To record estimated bad debts for the year) Debit 13300 3200 3200 Credit 13300 3200 3200

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by t…

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable ari…