(Solution) - At the end of 2013 Blackhorse Productions Inc used the -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

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At the end of 2013, Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,750. The account had an unadjusted credit balance of $10,000 at December 31, 2013.
Required:
Prepare journal entries for each transaction.
a. The appropriate bad debt adjustment was recorded for the year 2013.
b. On January 31, 2014, an account receivable for $1,000 from March 2013 was determined to be uncollectible and was written off.