At the beginning of the current period, Griffey Corp. had balances
in Accounts Receivable of $237,700 and in Allowance for Doubtful Accounts
of $8,700 (credit). During the period, it had net credit sales of
$854,000 and collections of $784,000. It wrote off as uncollectible
accounts receivable of $7,100. However, a $4,500 account previously
written off as uncollectible was recovered before the end of the current
period. Uncollectible accounts are estimated to total $24,800 at the end
of the period. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
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(a)
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Prepare the entries to record sales and collections during the
period.
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(b)
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Prepare the entry to record the write-off of uncollectible
accounts during the period.
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(c)
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Prepare the entries to record the recovery of the uncollectible
account during the period.
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(d)
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Prepare the entry to record bad debt expense for the period.
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No.
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Account Titles and
Explanation
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Debit
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Credit
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(a)
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(To record sales)
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(b)
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(c)
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(To reinstate account previously written off)
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(d)
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(e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.
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Ending balance in Accounts Receivable
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$
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Ending balance in Allowance for Doubtful Accounts
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$
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(f) What is the net realizable value of the receivables at the end of the period?
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The net realizable value of the receivables at the end of the
period
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$
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