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At the beginning of the current period, Marx Corporation had balances in Accounts Receivable of $224,000 and in Allowance for Doubtful Accounts of $10,400 (credit).
At the beginning of the current period, Marx Corporation had balances in Accounts Receivable of $224,000 and in Allowance for Doubtful Accounts of $10,400 (credit). During the period, Marx had credit sales of $896,000 and collections on account of $855,200. Marx expects a return rate of 5%. Marx uses a perpetual inventory system and determined that the cost of goods sold during the period was $750,400. Marx wrote off as uncollectible, accounts receivable of $8,800. However, a $4,000 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $28,000 at the end of the period. Using T accounts, determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. (Post entries in the order of journal entries presented in the previous question.) Accounts Receivable Allowance for Doubtful Accounts What is the carrying amount of the receivables at the end of the period? $ Carrying Amount of Receivables
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