Question

The December 31, 2021, balance sheet of the Oriole Company had Accounts Receivable of $690,000 and a credit balance in Allowance for Doubtful Accounts of $34,000. During 2022, the following transactions occurred: sales on account $1,637,000; sales returns and allowances, $107,000;collections from customers, $1,254,000; accounts written off, $38,000; previously written off accounts of $8,000 were collected. - Your answer is partially correct. Journalize the 2022 transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Accounts Receivable 690000 Devenue Sales Revenue 690000 (To record credit sales) Allowance for Doubtful Accounts 34000 Accounts Receivable 34000 (To record credits to customers) cash 1637000 Accounts Receivable 1637000 (To record collection of receivables) Sales Returns and Allowances 107000 Accounts Receivable 107000 (To write off specific accounts) cash 1254000 Accounts Receivable 1254000
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Answer 1

Prepare journal entries for the year 2022, in the manner given below: Credit Debit $1,637,000 Account title and explanation Accounts receivable Sales revenue (To record credit sales) $1,637,000 $107.000 Sales return and allowances Accounts receivable (To record sales return) $107.000 $1.254,000 Cash Accounts receivable (To record cash collection) $1,254.000 $38.000 Allowances for doubtful accounts Accounts receivable (To record write-off receivables) $38.000 $8.000 Accounts receivables Allowances for doubtful accounts (To record reversal of write off) $8.000 $8.000 $8.000 Cash Accounts receivables (To record cash collection from earlier written offs)

Prepare adjusting journal entry to record uncollectible accounts to be created in the manner given below: Account title and explanation Bad debt expense Allowances for doubtful accounts (To record uncollectible accounts) Debit Credit $79,520 $79,520 Calculate the amount of accounts receivable at the end, in the manner given below: Particulars Account receivable at the beginning Add: Credit sale during the year Less: Sales returns and allowances Less: Accounts receivable collected during period Less: Accounts receivables written off Accounts recceivable at the end Amount $690,000 $1,637,000 $107.000 $1,254,000 $38.000 $928,000 Calculate the ending balance of allowance for doubtful accounts, in the manner given below: Particulars Allowances for doubtful accounts: Beginning Less: Accounts receivable written off Add: Written off accounts receivable collected Allowances for doubtful accounts: Ending Amount $34.000 $38.000 $8,000 $4.000

Calculate the amount of provision required to be created in the manner given below: Working i=refer 1 $928.000 9% Particulars Accounts receivable at the end Uncollectibles Uncollectibles (in amount) Previously created provision Provision required to be created (i=0**) (iv)=refer 2 (v)=(i)--(iv) $83,520 4000 $79,520