Question

At December 31, 2021, Oriole Imports reported this information on its balance sheet.

Accounts receivable		$620,000
Less: Allowance for doubtful accounts		42,000

During 2022, the company had the following transactions related to receivables.

1.		Sales on account		$2,810,000
2.		Sales returns and allowances		63,000
3.		Collections of accounts receivable		2,510,000
4.		Write-offs of accounts receivable deemed uncollectible		44,000
5.		Recovery of bad debts previously written off as uncollectible		15,000

Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.	enter an account title to record the first transaction	enter a debit amount	enter a credit amount
	enter an account title to record the first transaction	enter a debit amount	enter a credit amount
2.	enter an account title to record the second transaction	enter a debit amount	enter a credit amount
	enter an account title to record the second transaction	enter a debit amount	enter a credit amount
3.	enter an account title to record the third transaction	enter a debit amount	enter a credit amount
	enter an account title to record the third transaction	enter a debit amount	enter a credit amount
4.	enter an account title to record the fourth transaction	enter a debit amount	enter a credit amount
	enter an account title to record the fourth transaction	enter a debit amount	enter a credit amount
5.	enter an account title to record the fifth transaction to reinstate account previously written off	enter a debit amount	enter a credit amount
	enter an account title to record the fifth transaction to reinstate account previously written off	enter a debit amount	enter a credit amount
	(To reinstate account previously written off)
	enter an account title to record the fifth transaction	enter a debit amount	enter a credit amount
	enter an account title to record the fifth transaction	enter a debit amount	enter a credit amount
	(To record collection of accounts receivable)

eTextbook and Media

List of Accounts

Enter the January 1, 2022, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances. (Post entries in the order of journal entries posted in the previous part)

Accounts Receivable
choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose the end date of the accounting period                                                                      Bal.(1)(2)(3)(4)(5)	enter a debit balance	choose the end date of the accounting period                                                                      Bal.(1)(2)(3)(4)(5)	enter a credit balance
Allowance for Doubtful Accounts
choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction date                                                                      Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose the end date of the accounting period                                                                      Bal.(1)(2)(3)(4)(5)	enter a debit balance	choose the end date of the accounting period                                                                      Bal.(1)(2)(3)(4)(5)	enter a credit balance

Answer 1

Oriole Imports Journal Entry Accounts Receivable 620000 Sales returns and allowances 2810000 Cash Particulars Debit in $ Credit in $ Bal 63000 Date 31.12.2021 Accounts Receivable a/c Sale Dr. 2810000 2510000 To Sales Allowance for doubtful accounts 15000 Allowance for doubtful accounts 44000 2810000 Cash Bal (Sales on account) 15000 813000 31.12.2021 Sales returns and allowances a/c Dr. 3445000 3445000 63000 To Accounts receivable 63000 (Sales return recorded) Allowance for doubtful accounts 44000 Bal Allowance for doubtful accounts 42000 Accounts Receivable 31.12.2021 Cash a/c 2510000 15000 Dr. 13000 Bal To Accounts receivable 2510000 57000 (Cash from debtors) 57000 31.12.2021 Allowance for doubtful accounts a/c Dr 44000 44000 To Accounts receivable (Uncollectibles written off) 31.12.2021 Accounts Receivable a/c Dr. 15000 To Allowance for doubtful accounts 15000 (Recovery of bad debts) Cash a/c Dr. 15000 To Accounts receivable 15000 (Cash from debtors)