Prepare journal entries for each transaction listed. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) At the end of June, bad debt expense is estimated to be $15,000. In July, customer balances are written off in the amount of $7,500

Bad Debts (dr) ... to debtors (cr) = 15000

Cash (dr) ... to debtors (cr) = 7500

Explanation:

Journal is the book of recording accounting transactions.

It has following rules:

Debit all assets, expenses, losses Credit all liabilities, incomes, gains

June : bad debt expense is estimated to be $15,000

Bad Debts A/c (debit) 15000

to Debtors A/c (credit) 15000

{ ∵ bad debts is loss, debtors are asset }

July : customer balances are written off in the amount of $7,500

Cash A/c (debit) 7500

to Debtors A/c (credit) 7500

{∵ cash is asset, debtors are asset }