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At the beginning of the current period, Granger Enterprises Ltd. had balances in Accounts Receivable of $2,104,000 and in Allowance for Doubtful Accounts of $140,000
At the beginning of the current period, Granger Enterprises Ltd. had balances in Accounts Receivable of $2,104,000 and in Allowance for Doubtful Accounts of $140,000 (credit). During the period, Granger had credit sales of $4,332,000 with cost of goods sold of $3,120,000 and collections of $5,231,000. It wrote off $188,000 of accounts receivable. However, a $30,000 account written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $79,000 at the end of the period.
Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Account Titles and Explanation Debit Credit Accounts Receivable 4332000 Sales 4332000 (To record sales) Cost of Goods Sold 3120000 Inventory 3120000 (To record cost of sales sold) Cash 5231000 Accounts Receivable 5231000 (To record collections) Your answer is correct. Prepare the entry to record the write off of the $188,000 of accounts deemed uncollectible during the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts 188000 Accounts Receivable 188000 Prepare the entry(ies) to record the collection of the $30,000 account written off as part of the uncollectible accounts. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Accounts Receivable 30000 Allowance for Doubtful Accounts 30000 (To reverse write-off of account receivable) Cash 30000 Accounts Receivable 30000 (To record collection of account receivable) Prepare the entry to record bad debts expense for the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit CreditStep by Step Solution
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