Smith’s Restaurant Supply Corp. manufacturer a variety of stainless steel food services products. They make all sales on 30-day credit terms. Annual sales in 2019 are $30,000,000. At the end of 2018, accounts receivable were presented in the company's balance sheet as follows.

Accounts receivable from clients $3,100,000 Less: Allowance for doubtful accounts 80,000

During 2019, $160,000 of specific accounts receivable were written off as uncollectible. Of the accounts written off, receivables totaling $16,000 were subsequently collected after they were written off, later in the year. At the end of the year, an aging of accounts receivable indicated a need for a $224,000 allowance to cover possible failure to collect the accounts currently outstanding.

Prepare the following general journal entries:

1. One entry to summarize all accounts written off against the Allowance for Doubtful Accounts during 2019.

2. The entries to record the $16,000 in accounts receivable that were subsequently collected.

3. The adjusting entry required at December 31, 2019, to increase the Allowance for Doubtful Accounts to $228,000.

If no entry is required for a transaction or event, enter No journal

Answer rating: 100% (QA)

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