Question
At the beginning of the current period, Splish Corp. had balances in Accounts Receivable of $288,000 and in Allowance for Doubtful Accounts of $8,100 (credit).
At the beginning of the current period, Splish Corp. had balances in Accounts Receivable of $288,000 and in Allowance for Doubtful Accounts of $8,100 (credit). During the period, it had net credit sales of $895,000 and collections of $850,250. It wrote off as uncollectible accounts receivable of $6,700. However, a $3,600 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,000 at the end of the period. (Omit cost of goods sold entries.)
(a - d)
(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 | Debit | Credit |
---|---|---|---|
(a) | enter an account title to record sales | enter a debit amount | enter a credit amount |
enter an account title to record sales | enter a debit amount | enter a credit amount | |
(To record sales) | |||
enter an account title to record cash collected during the period | enter a debit amount | enter a credit amount | |
enter an account title to record cash collected during the period | enter a debit amount | enter a credit amount | |
(To record cash collected during the period) | |||
(b) | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
(c) | enter an account title to reinstate account previously written off | enter a debit amount | enter a credit amount |
enter an account title to reinstate account previously written off | enter a debit amount | enter a credit amount | |
(To reinstate account previously written off) | |||
enter an account title to record the recovery of the uncollectible account during the period | enter a debit amount | enter a credit amount | |
enter an account title to record the recovery of the uncollectible account during the period | enter a debit amount | enter a credit amount | |
(To record the recovery of the uncollectible account during the period) | |||
(d) | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
(e)
Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.
Ending balance in Accounts Receivable | $enter a dollar amount | |
---|---|---|
Ending balance in Allowance for Doubtful Accounts | $enter a dollar amount |
(f)
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 | $enter the net realizable value of the receivables at the end of the period in dollars
|
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