Question

At the beginning of the current period, Tamarisk Corp. had balances in Accounts Receivable of $202,700 and in Allowance for Doubtful Accounts of $9,820 (credit). During the period, it had net credit sales of $880,000 and collections of $706,410. It wrote off as uncollectible accounts receivab $7,172. However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,010 at the end of the period. (Omit cost of goods sold entries.) a Prepare the entries to record sales and collections (b) Prepare the entry to record the write-off of uncolleing the period. accounts during the period (c) Prepare the entries to record the recovery of the uncollectible account during the period (d) 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.) Debit Credit No. Account Titles and Explanation (а) (To record sales) (To record cash received) (b) (c) (To reinstate account previously written off) (To record cash received) (d) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. Ending balance in Accounts Receivable Ending balance in Allowance for Doubtful Accounts SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO What is the net realizable value of the receivables at the end of the period? Net realizable value of the receivables at the end of the period

Answer 1

Tamarisk Co. Accounts receivables Sales revenue 880000 880000 Allowance for Doubtful debts account Accounts receivable 7172 Op. Balance Accounts receivable Bad debt exp.( bal. figure ) Closing balance ( given) 25010 321821 3 9820 3100 19262 706410 2182 Cash Accounts receivables 706410 7172 ALLOWANCE FOR DOUBTFUL DEBTS Accounts receivables 7172 Accounts Receivable Account Opening balance 202700 Collections Credit sales 880000 Allowance for Doubtful debts Allowance for Doubtful debts 3100 Cash Closing Balance 1085800 706410 7172 3100 369118 1085800 3100 Accounts receivables ALLOWANCE FOR DOUBTFUL DEBTS 3100 3100 Cash Accounts receivables 3100 19262 Bad debt exp. ALLOWANCE FOR DOUBTFUL DEBTS 19262 Ending Balance: Accounts receivables ALLOWANCE FOR DOUBTFUL DEBTS 369118 25010 NRV Accounts receivables 369118 Less:-ALLOWANCE FOR DOUBTFULD -25010 NRV 344108