At the beginning of the current period, Huang
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 $743,000. It wrote off as
uncollectible accounts receivable of $7,000. However, a $4,000 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.
Instructions
(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 debts expense for the period.
(e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.
(f) What is the net realizable value of the receivables at the end of the period?
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Instructions
(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 debts expense for the period.
(e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.
(f) What is the net realizable value of the receivables at the end of the period?
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