At the beginning of the current period, Swifty Ltd. had balances in Accounts Receivable of 247,000 and in Allowance for Doubtful Accounts of 9,500 (credit). During the period, it had net credit sales of 815,000 and collections of 774,250. It wrote off as uncollectible accounts receivable of 6,300. However, a 3,200 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total 24,500 at the end of the period. (Omit cost of goods sold entries.) (a) Prepare the entries to record sales and collections during the period. Pharoah Publishers, uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end ( in thousands). Calculate the total estimated bad debts based on the below information. (b) Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a 8,300 debit. (c) Of the above accounts, 5,200 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (d) The company collects 5,200 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) On January 1, 2020, Ivanhoe Wholesalers had Accounts Receivable 131,000, Notes Receivable 27,600, and Allowance for Doubtful Accounts 16,600. The note receivable is from Pronghorn Company. It is a 4-month, 9% note dated December 31,2019 . Ivanhoe prepares financial statements annually at December 31 . During the year, the following selected transactions occurred. Jan. 5 Sold 21,600 of merchandise to Sheldon Company, terms n/15. 20 Accepted Sheldon's 21,600,3-month, 8% note for balance due. Feb. 18 Sold 10,600 of merchandise to Patwary Company and accepted Patwary's 10,600,6-month, 9% note for the amount due. Apr. 20 Collected Sheldon note in full. 30 Received payment in full from Pronghorn Company on the amount due. May 25 Accepted Potter Inc.'s 7,200,3-month, 7\% note in settlement of a past-due balance on account. Aug. 18 Received payment in full from Patwary on note due. 25 The Potter Inc. note was dishonored. Potter is not bankrupt; future payment is anticipated. Sept. 1 Sold 12,000 of merchandise to Stanbrough Company and accepted a 12,000,6-month, 10\% note for the amount due. Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
