Question

Exercise 8-04 a-f (Video) At the beginning of the current period, Rose Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000 (credit). During the period, it had net credit sales of $800,000 and collections of $763,000. It wrote off as uncollectible accounts receivable of $7,300. 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 $25,000 at the end of the period. (Omit cost of goods sold entries.) Your answer is correct. (a) Prepare the entries to record sales and collections during the period. (b) Prepare the entry to record the write-off of uncollectible 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.) No. Account Titles and Explanation Debit Credit (a) Accounts Receivable 800000 Sales Revenue 800000 (To record sales) Cash 1 763000

Answer 1

Answer: bod debt expense = 25,000-,000 7,300+ 3,100), = 25,000-4800 20,200 Debit Co. Creditle / $800,000 ---- $800,000 $263.000 $763,000 $7,300 particulare accounts receivable cales Cash accounts receivable Allowance for doubtful accounts accounts receivable @ Laccounts receivable Lallowance fox doubtfud accounty cash accounts receivable bad debts expenses. Hallowance for doubtful accounts. $7,300 $3,100 $3,100 $3,100 $3,100 $20, doo I $20,000

@ Ending balance in accounts receivable = 200,000+800,000 - 763,000 - 200 = $229,700 Ending balane in allowance for doubtful accounts = $ 25,000 Ending balance in accounts receivable $229,7400 $25,000 Ending balance in allowance for dowhriful carcerer's & net reliable valece of the receivables at the end of period = Accounts receivable allowance for doubstfel debts . = $229,700 – $ 85,000 = $204,700 inet realisable value of the receivables at the end odo period=$20,tool