Question

Exercise 6-8 At the beginning of the current period, Coronado Industries had balances in Accounts Receivable of $211,000 and in Allowance for Doubtful Accounts of $8,910. During the period, it had net credit sales of $777,300 and collections of $764,980. It wrote off as uncollectible accounts receivable of $8,009. Uncollectible accounts are estimated to total $23,630 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 ..-45 or parentheses e.g. (45).) Assets Liabilities Stockholders' Equity Retained Earnings Allow. For Cash + Accts. Rec. - Doubtful Accts Common Stock Rev. - Exp Beg. Bal. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Ending balance in Accounts Receivable Ending balance in Allowance for Doubtful Accounts

Answer 1

	Cash	Accounts Receivable	Allow. For Doubtful accounts	Common Stock	Rev	Exp
Beg bal		$           2,11,000	$                8,910
a		$           7,77,300			$           7,77,300		Sales Revenue
	$        7,64,980	$         -7,64,980
b		$               -8,009	$               -8,009
c			$              22,729			$         22,729	Bad Debt Expense

Accounts receivable ending balance = $215311
Allowance for Doubtful accounts = $23630