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No. Account Titles and Explanation (a) Accounts Receivable Sales Revenue (To record sales on account) Cash Accounts Receivable (To record collection of accounts receivable) (b)
No. Account Titles and Explanation (a) Accounts Receivable Sales Revenue (To record sales on account) Cash Accounts Receivable (To record collection of accounts receivable) (b) Allowance for Doubtful Accounts Accounts Receivable (c) Accounts Receivable Allowance for Doubtful Accounts (To reverse write-off of account) Cash Accounts Receivable (To record collection) (d) Bad Debt Expense Allowance for Doubtful Accounts Debit 650000 Credit 5000 3000 3000 13,000 Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. (a) to (d) Your answer is correct. (a) Prepare the entries to record sales and collections during the period. Omit cost of goods sold entries. (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. At the beginning of the current period, Ace Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000 (credit). During the period, it had credit sales of $650,000 and collections of $590,000. It wrote off as uncollectible accounts receivable of $5,000. However, a $3,000 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $20,000 at the end of the period
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