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At the beginning of August, Uli Limited, which records adjusting entries at the end of each month, had an Accounts Receivable amount of $30,500 and
At the beginning of August, Uli Limited, which records adjusting entries at the end of each month, had an Accounts Receivable amount of $30,500 and an Allowance for Doubtful Accounts balance of $5,500. During August, the company had credit sales of $39,600 and collected $34,500 from customers. It also wrote off a certain amount of uncollectible receivables during the month and recorded a certain amount of bad debts expense at the end of the month. No accounts that were written off during the month were subsequently recovered. At the end of August, after all journal entries had been recorded and posted, the balance in Accounts Receivable was $32,400 while Allowance for Doubtful Accounts had a balance of $5,000. (a) Prepare T accounts for Accounts Receivable and Allowance for Doubtful Accounts. Post the above transactions and determine the missing amounts for the write off of uncollectible receivables and bad debts expense. Accounts Receivable
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