At the beginning of the current period, Griffey Corp. had balances in Accounts R

Question

At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $228,100 and in Allowance for Doubtful Accounts of $9,700 (credit). During the period, it had net credit sales of $881,000 and collections of $766,000. It wrote off as uncollectible accounts receivable of $7,700. However, a $4,700 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,300 at the end of the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a) Prepare the entries to record sales and collections during the period

(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.

(e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.

(f) What is the net realizable value of the receivables at the end of the period?

no. account title and explanation Debit    Credit (a) (b) (c) (d)

Explanation / Answer

Answer:(a)

Dr Accounts receivable (AR) $881,000
Cr Sales $881,000

Dr Cash $766,000
Cr AR $766,000

Answer:(b) Dr Allowance for Doubtful Accounts $7,700
Cr AR $7,700

Answer:(c)

Dr AR $4,700
Cr ADA $4,700

Dr Cash $4,700
Cr AR $4,700

Answer:(d)

Dr bad debts expense $17,600
Cr Allowance for doubtful accounts $17,600

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