At the beginning of the current period, Huang Ltd. had balances in Accounts Receivable of $945,000 and
Question:
At the beginning of the current period, Huang Ltd. had balances in Accounts Receivable of $945,000 and in Allowance for Doubtful Accounts of $139,000 (credit). During the period, Huang had credit sales of $4.7 million with cost of goods sold of $2.9 million and collections of $4.8 million. It wrote off $146,000 of accounts receivable. However, a $3,000 account written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $97,000 at the end of the period.
Instructions
(a) Prepare the entries to record the sales and collections during the period.
(b) Prepare the entry to record the write off of uncollectible accounts during the period.
(c) Prepare the entry(ies) to record the collection of the $3,000 account written off as uncollectible in part P8.2B(b).
(d) Prepare the entry to record bad debts expense for the period.
(e) Prepare T accounts for Accounts Receivable and Allowance for Doubtful Accounts.
(f) Show the statement of financial position presentation of the receivables at the end of the period.
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:
a Accounts Receivable 4700000 Sales 4700000 Cost of Goods Sold 2900000 Inventory 2900000 Cash 480000...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
