At the beginning of the current period, Funko Co. had a balance of $92,000 in Accounts Receivable
Question:
At the beginning of the current period, Funko Co. had a balance of $92,000 in Accounts Receivable and a $6,440 credit balance in Allowance for Doubtful Accounts. In the period, it had net credit sales of $368,000 and collections of $332,580. It wrote off accounts receivable of $11,000 as uncollectible. After a $2,280 account was written off as uncollectible, it was subsequently collected. This is in addition to the other cash collections. Based on an aging schedule, uncollectible accounts are estimated to be $6,500 at the end of the period
a) Record sales and collections in the period. Ignore any inventory, cost of goods sold, and refund liability for the purposes of this question.
b) Record the write off of uncollectible accounts in the period.
c) Record the collection of the account previously written off as uncollectible.
d) Record the bad debt expense adjusting entry for the period.