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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 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At December 31, 2021, Novak Company had a credit balance of $18,000 in Allowance for Doubtful Accounts. During 2022, Novak wrote off accounts totaling $13,300. One of those accounts of $3,200 was later collected. At December 31, 2022, an aging schedule 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
Transcribed Image Text:At December 31, 2021, Novak Company had a credit balance of $18,000 in Allowance for Doubtful Accounts. During 2022, Novak wrote off accounts totaling $13,300. One of those accounts of $3,200 was later collected. At December 31, 2022, an aging schedule 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
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