At the beginning of the current period, Rose Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000. During the period, it had credit sales of $800,000 and collections of $763,000. It wrote off as uncollectible accounts receivable of $7,300. Uncollectible accounts are estimated to total $25,000 at the end of the period. (Omit recording cost of goods sold.)

Instructions

Record sales and collections during the period.

Record the write-off of uncollectible accounts during the period.

Record bad debt expense for the period.

Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.

	Assets =			Liab. +	OE
	Cash	Gross A/R	Allowance D/A	n/a	RE	notes
Beg Balance	n/a	200,000	-9,000	n/a	n/a
Sales
Collections
Write off
Bad debt expense
Ending balance	n/a			n/a	n/a

Compare the net realizable value of the receivables at the beginning to the end of the period.

In comparing the beginning to the end of the period, does management expect that they will be able to collect a greater or lesser proportion of outstanding receivables? Why?