Question

Question 4 --/1 View Policies Current Attempt in Progress At the beginning of the current period, Swifty Corporation had balances in Accounts Receivable of $195,100 and in Allowance for Doubtful Accounts of $9,350. During the period, it had net credit sales of $745,500 and collections of $835.120. It wrote off as uncollectible accounts receivable of $7,831. Uncollectible accounts are estimated to total $24,100 at the end of the period. (Omit recording cost of goods sold.) Enter the beginning balances for Accounts Receivable and Allowance for Doubtful Accounts in a tabular summary. Use the summary to record transactions (a), (b), and (c) below. (a) Record sales and collections during the period. (b) Record the write-off of uncollectible accounts during the period. (c) Record bad debt expense for the period. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Assets = Liabilities + Stockholders' Equity Allow. For Doubtful Accts Retained Earnings Exp. Cash Accts. Rec. - + Common Stock + Rev. . Beg.Bal. $

Answer 1

$ 97,649 Ending balance in Accounts receivable Ending balance in Allowance for doubtful debts $ 24,100 Net realisable value at the end of the period $ 73,549 Closing balance of Accounts receivable less closing balance of Allowance for doubtful debts. Assets - Liabiltie: Stockhodler's equity. Retainedc earnings - Exp Cash Allowance for doubtful debts Common stock + Rev Beg Bal. -9,350 Accts.receivable 1,95,100 7,45,500.00 -8,35,120.00 -7,831.00 7,45,500.00 8,35,120.00 -14,750.00 -24,100.00 -7,831.00 -14,750.00 -22,581.00 97,649.00 8,35,120.00 TOTAL ASSETS - 7,45,500.00 TOTAL Retained earnings 9,08,669 7,22,919 NOTE: The difference in assets and equity is due to lack of information about opening retained earnings and common stock. It is assumed that total provision at year end is $ 24,100.

Data Summary: Accounts Receivable alc ALLOWANCE FOR DOUBTFUL ACCOUNTS(Balance sheet) To Balance bld 1,95,100 By cash alo 8,35,120.0 By Balance bid 9,350.0 To Sales alo 7.45,500 By Bad debts written off 7,831.0 To Balance old 24,100 | By provision for bad and doubtfuldebts ###### By Balance old 97,649.0 9,40,600.0 9,40,600.0 24,100.0 ###### Sales alc Cash alc By Accounts receivable alo 7,45,500.0 To Accounts Receivable a 8,35,120 8,35,120.0 7,45,500.0 Bad debts written off Provision for receivales(Profit and Loss account) To Accounts Receivable a 7 831 To allowance for doubtful debts 14,750 7,831.0 14,750.0 Profit and Loss account 7,45,500.0 TO Bad debts written off To allowance for doubtfulc 7,831 By Sales 14,750 To Net profit 7,22,919.0 7,45,500.0 7,45,500.0