At the beginning of the current period, Marx Enterprises Ltd. had balances in Accounts Receivable of $2,102,000 and in Allowance for Doubtful Accounts of $141,000 (credit). During the period, Marx had credit sales of $4,295,000 with cost of goods sold of $3,087,000 and collections of $5,204,000. It wrote off $181,000 of accounts receivable. However, a $28,000 account written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $90,000 at the end of the period. Your answer is correct. 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 o for the amounts.) Account Titles and Explanation Debit Credit Accounts Receivable 4,295.000 Sales 4.295,000 (To record sales) Cost of Goods Sold 3,087,000 Inventory 3,087,000 (To record cost of sales sold) Cash 5,204,000 Accounts Receivable 5,204,000 (To record collections) e Textbook and Media List of Accounts Prepare the entry to record the write off of the $181,000 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 181,000 Accounts Receivable 181,000 e Textbook and Media List of Accounts Your answer is partially correct. Prepare the entry(ies) to record the collection of the $28,000 account written off as part of the uncollectible accounts. (Credit account titles are automatically indented when amount i entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit 28,000 28,000 (To reverse write-off of account receivable) Allowance for Doubtful Accounts 181.000 Accounts Receivable 181,000 (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 Credit No Entry 0 0 e Textbook and Media List of Accounts X Your answer is incorrect. (1) Prepare T accounts for Accounts Receivable and Allowance for Doubtful Accounts, (2) enter the opening balances, (3) post the journal entries prepared above, and (4) determine the ending balances. (Post entries in the order of journal entries presented in the previous question.) Accounts Receivable + OOO! I DOM Allowance for Doubtful Accounts DOO! 100 e Textbook and Media List of Accounts X Your answer is incorrect. Show the statement of financial position presentation of the receivables at the end of the period. MARX ENTERPRISES LTD. Statement of Financial Position (partial) Assets $ $
