At the beginning of the current period, Windsor, Inc. had balances in Accounts R

Question

At the beginning of the current period, Windsor, Inc. had balances in Accounts Recelvable of $185,100 and in Allowance for Doubtful Accounts of s8,880 (credit During the perlod, t had net credit sales of s758,500 and collections of $691,100. It wrote off as uncollectible accounts receivable of $7,839. However, a $2,841 account previously w tten off as uncollectible was recovered before the end of the current period uncollectible accounts are estimated to total $23,050 at the nd of the periad. (omit cost of goods sold entries.) (a) Prepara the entries to record sales and collections during the periood (b) Prepare the entry to record tha write-off of uncollectible accounts during tha pariod. (c) Prepare th entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit To record sales) (To relnstate account prevlously written off)

Explanation / Answer

Ending Balance in account receivables = $185,100 +758,500 - 691,100 - $7,839 = $244,661

Ending Balance in Allowance for Doubtful Accounts = $23,050

Net realizable value of the receivables at the end of the period = $244,661 - $23,050 = $221,611

No. Account Titles and Explanation Debit Credit (a) Accounts Receivable $758,500   Sales $758,500 (to record sales) Cash $691,100   Accounts Receivable $691,100 (b) Allowance for Doubtful Accounts $7,839   Accounts Receivable $7,839 (c) Accounts Receivable $2,841   Allowance for Doubtful Accounts $2,841 (to reinstate account previously written off) Cash $2,841   Accounts Receivable $2,841 (d) Bad Debt Expense {$23,050 - ($8,880 - 7,839 +2,841)} $19,168 Allowance for Doubtful Accounts $19,168

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