Answer:
1. Journal Entries:
a. | Accounts Receivables A/c Dr. | 21086000 | |
Cash A/c Dr. | 5272000 | ||
To Sales A/c | 26358000 | ||
b. | Cash A/c Dr. | 19923000 | |
To Accounts Receivables A/c | 19923000 | ||
c. | Allowance for doubfull accounts | 95312 | |
Bad Debts A/c Dr. | 6888 | ||
To Accounts Receivables | 102200 | ||
d. | Cash A/c Dr. | 21300 | |
To Bad Debts recovered A/c | 21300 |
2. T Accounts:
Accounts Receivables | |||||
Date | Particulars | Amount | Date | Particulars | Amount |
january 1st 2020 | To Opening balance | 2978500 | By Cash | 19923000 | |
To Sales | 21086000 | By Allowance for doubtfull debts | 95312 | ||
By Bad Debts | 6888 | ||||
December 31st 2020 | By Closing balance | 4039300 | |||
24064500 | 24064500 |
Allowance for doubtful Debts a/c | |||||
Date | Particulars | Amount | Date | Particulars | Amount |
To Accounts Receivables | 95312 | january 1st 2020 | By Opening balance | 95312 | |
95312 | 95312 |
3 if the estimated value of uncollectable accounts at year end is measured of $ 129300.00, then following entry of bad debts is to be passed:
Bad Debts A/c Dr. 129300
To Allowance for doubfull debts a/c 129300
4. the following balance of accounts receivable will be presented under assets - Current assets- of statement of financial position:
Accounts Receivable (gross) = $ 4039300 (As per T account above)
Less: Allowance for doubtfull debts = $ 129300
Accounts Receivable (Net) = $ 3910000
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