Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $203,500 and in Allowance for Doubtful Accounts of $8,620 (credit).

image text in transcribed
image text in transcribed
image text in transcribed
At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $203,500 and in Allowance for Doubtful Accounts of $8,620 (credit). During the period, it had net credit sales of $739,000 and collections of $813,450. It wrote off as uncollectible accounts receivable of $7,198. However, a $2,978 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,810 at the end of the period. (Omit cost of goods sold entries.) (a - d) Your answer is correct. (a) Prepare the entries to record sales and collections during the period. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Credit Debit (a) Accounts Receivable 739000 Accounts Receivable 739000 Sales Revenue 739000 (To record sales) Cash 813450 Accounts Receivable 813450 Allowance for Doubtful Accounts 7198 Accounts Receivable 7198 (c) Accounts Receivable 2978 Allowance for Doubtful Accounts 2978 (To reinstate account previously written off) Cash 2978 Accounts Receivable 2978 (d) Bad Debt Expense 22410 Allowance for Doubtful Accounts 22410 Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. Ending balance in Accounts Receivable 121,852 Ending balance in Allowance for Doubtful Accounts $ 26,810 e Textbook and Media What is the net realizable value of the receivables at the end of the period? The net realizable value of the receivables at the end of the period $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Classification And Coding Of Accounting Information

Authors: R. Fox

2nd Edition

0948036885, 978-0948036880

More Books

Students also viewed these Accounting questions

Question

Discuss the states of accounting

Answered: 1 week ago