Question

hello, can you please correct the red box?

Thanks

of $8,520 (credit). During the period, it had credit sales of $722,500 and collections of $708,940. It wrote off as uncollectible accounts receivable of $7,972. However, a $3,275 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $22,740 at the end of the period. (Omit cost of goods sold entries.) (a-d) Your answer is correct. Review Score (a) Prepare the entries to record sales and collections during the period. Prepare the entry to record the write-off of uncollectible accounts during the period. Prepare the entries to record the recovery of the uncollectible account during the period. Prepare the entry to record bad debt expense for the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Accounts Receivable Sales Revenue Accounts Receivable (To record collection) b or Doubet AS 3275 Allowance for Doubtful Accounts (Toreinstate cu previously w en of) 32751 Accounts Receivable To record collection) 19 od Dust Expense wance for Doubtful Accounts Click you would like to show Work for this question: Open Show Work 1997 SHOW LIST OF ACCOUNTS VIDEO SIMILAR EXERCISE APPLIED SCILLS Attempts: 1 of 15 used (0) Your answer is partially correct. Try again. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. Ending balance in Accounts Receivable Ending balance is Allowance for Doubl e 22740

The question is in the second picture, please correct the red box, thanks!

Answer 1

Solution Required: Computation of ending balances in Accounts Receivable and Allowance for Doubtful Accounts Accounts Allowance for Receivable (Gross) Accounts Doubtful Receivable, net Accounts Dr. (Cr.) Bal. Dr. (Cr.) Bal. Dr. (Cr.) Bal. Beginning Balance Sales on Account Collection from Accounts receivables Uncollectible Accounts receivables write-offs Reinstate of Accounts Previously written off Collection from Previously written off Accounts Ending balance (prior to Bad debts expense) Bad debt expense (WN-1) Ending balance $192,800 ($8,520) $184,280 $722,500 $0 $722,500 ($708,940) ($708,940) ($7,972) $7,972 $3,275 ($3,275) ($3,275) $198,388 $0 ($3,275) ($3,823) ($18,917) ($22,740) $194,565 ($18,917) $198,388 $175,648 WN-1: Bad debt expense Estimated Uncollectible Accounts at the end of current period $22,740 Balance in Allowance for doubtful accounts prior to bad debts (Cr. bal.) Estimated bad debt expense ($22,740 $3,823) ($3,823) $18,917 Ending balance in Accounts Receivable Ending balance in Allowance for Doubtful Accounts $198,388 $22,740