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In early 2021, Amina Corp. had balances in account receivables of BD 125,000 and allowance for doubtful accounts of BD 4,500 (credit). During the period,
In early 2021, Amina Corp. had balances in account receivables of BD 125,000 and allowance for doubtful accounts of BD 4,500 (credit). During the period, the business had net credit sales of BD 400,000 and collections of BD 350,000. It wrote as uncollectible accounts receivable of BD 3,800. However, a BD 1,500 account previously written off as uncollectible was recovered be the end of the current period. Uncollectible accounts are estimated to total BD 12,500 at the end of the period. Required: a. Prepare the entries to record sales and collections (2 marks) b. Prepare the entry to record the write-off of uncollectible accounts (1 mark) c. Prepare the entries to record the recovery of uncollectible account (2 marks) d. Prepare the entry to record bad debt expense (1 mark) e. Determine the ending balances in account receivable (2 marks) and ending balance for doubtful accounts (2 marks) f. What is the net realizable value of the receivables at the end of period (2 marks)
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