WORKSHOP 5: Cash and receivables Question 1: Hampson Furniture has credit sales of 1,200,000 in 2002. Of this amount, $200,000 remains uncollectible at Dec. 31. The credit manager estimated that $12,000 of these sales will be uncollectible. The adjusting entry to record the estimated uncollectible amounts is: Date Accounts Titles Debit Credit DEC 311 RECORDING THE WRITE-OFF OF AN UNCOLLECTIBLE ACCOUNT Assume that the vice-president of finance of Hampson Furniture authorizes write-off of the $500 balance owed by R. A. Ware on March 1, 2003. The entry to record the write-off is: Date Accounts Titles Debit Credit March 1 RECOVERY OF AN UNCOLLECTIBLE ACCOUNT Assume that on July 1, R. A. Ware pays the $500 amount that had been written-off on March. These are the entries: Date Accounts Titles Debit Credit July 1 Date Accounts Titles Debit Credit July 1