Problem 9-1A

For House Co., given balance sheet information and a set of transactions related to receivables:

a) Prepare the journal entries.

b) Enter balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accoutns and determine the balances.

c) Prepare the journal entry to record bad debt expense for 2014, assuming a given aging of accounts receivable.

d) Compute the accounts receivable assuming the bad debt information from (c).