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Starr Company has an Accounts Receivable balance of $45,000 as of July 31, 2018. Before the month end adjustment, Allowance for Doubtful accounts has a
Starr Company has an Accounts Receivable balance of $45,000 as of July 31, 2018. Before the month end adjustment, Allowance for Doubtful accounts has a credit balance of $8,000. Credit sales during the month were $52,000 with collections on account of $70,000. Willow Company estimates bad debt expense to be $10,000 for the month. Write-off of uncollectible receivables totaled $3,300 and an account of $900 was recovered. Required a) Journalize sales, collections, write-offs of uncollectibles, recovery of accounts receivable and bad debt expense by the allowance method for December. Explanations are not required. b) Calculate the ending balances in Accounts Receivable, Allowance for Doubtful Accounts and Net Accounts Receivable
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