Assume the following information for Larry Corp. Accounts receivable (beginning balance)...........$142,000 Allowance for doubtful accounts (beginning balance)
Question:
Assume the following information for Larry Corp.
Accounts receivable (beginning balance)...........$142,000
Allowance for doubtful accounts (beginning balance) ...........11,360
Net credit sales...........945,000
Collections...........910,000
Write-off s of accounts receivable...........5,200
Collections of accounts previously written off...........1,900
Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable.
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. Determine the ending balance in Accounts Receivable and the unadjusted balance in Allowance for Doubtful Accounts.
e. Prepare the entry to record bad debt expense for the period.
f. Determine the ending (adjusted) balance in Allowance for Doubtful Accounts.
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119493631
9th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso