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At the beginning of the current period, Speedway Corporation had balances in Accounts Receivable of $200,400 and in Allowance for Doubtful Accounts of $8,400 (credit).
At the beginning of the current period, Speedway Corporation had balances in Accounts Receivable of $200,400 and in Allowance for Doubtful Accounts of $8,400 (credit). During the period, Speedway had credit sales of $804,100 and collections on account of $765,500. Speedway uses a perpetual inventory system and determined that the cost of goods sold during the period was $663,800. Speedway wrote off as uncollectible accounts receivable of $7,500. However, a $2,800 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $22,600 at the end of the period. Prepare the entries to record sales, cost of goods sold, 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 (To record sales) (To record cost of goods sold) (To record collections) Prepare the entry to record the write-off of uncollectible accounts 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 List of Accounts Prepare the entries to record the recovery of the uncollectible account 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 (To reverse write-off of account receivable) (To record recovery of uncollectible amount) List of Accounts 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 List of Accounts 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 V Allowance for Doubtful Accounts > > > > List of Accounts What is the carrying amount of the receivables at the end of the period? Carrying Amount of Receivables List of Accounts
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