At the end of 2010, Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,850. The account had an unadjusted credit balance of $12,000 at that time. Required:
Prepare journal entries for each of the following.
A. The appropriate bad debt adjustment was recorded.
B. Later, an account receivable for $1,000 was determined to be uncollectible and was written off.

A.Dr Bad Debt Expense 7,850

Cr Allowance for Doubtful Accounts 7,850

B.Dr Allowance for Doubtful Accounts 1,000

Cr Accounts Receivable 1,000

Explanation:

Preparation of the Journal entries for Blackhorse Productions,

A.Since we were that the company used the aging of accounts receivable method to help them estimate that Allowance for Doubtful Accounts should be the amount of $19,850 in which the account had an unadjusted credit balance of the amount $12,000 this means that the transaction will be recorded as:

Dr Bad Debt Expense 7,850

Cr Allowance for Doubtful Accounts 7,850

[19,850 - 12,000]

B. Since the company later had an account receivable for the amount of $1,000 whichb was determined to be uncollectible and was written off this means that the transaction will be recorded as:

Dr Allowance for Doubtful Accounts 1,000

Cr Accounts Receivable 1,000

answer; im thinking the correct answer is (7years);