At the beginning of the current period, Concord Corporation had balances in Acco

Question

At the beginning of the current period, Concord Corporation had balances in Accounts Receivable of $218,900 and in Allowance for Doubtful Accounts of $9,890 (credit). During the period, it had net credit sales of $742,000 and collections of $711,970. It wrote off as uncollectible accounts receivable of $6,689. However, a $2,793 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $27,030 at the end of the period. (Omit cost of goods sold entries.) At the beginning of the current period, Concord Corporation had balances in Accounts Receivable of $218,900 and in Allowance for Doubtful Accounts of $9,890 (credit). During the period, it had net credit sales of $742,000 and collections of $711,970. It wrote off as uncollectible accounts receivable of $6,689. However, a $2,793 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $27,030 at the end of the period. (Omit cost of goods sold entries.) No. Account Titles and Explanation Debit Credit (a) (To record sales) (b) (c) (To reinstate account previously written off) (d) Ending balance in Accounts Receivable Ending balance in Allowance for Doubtful Accounts

Exercise 8-3

At the beginning of the current period, Concord Corporation had balances in Accounts Receivable of $218,900 and in Allowance for Doubtful Accounts of $9,890 (credit). During the period, it had net credit sales of $742,000 and collections of $711,970. It wrote off as uncollectible accounts receivable of $6,689. However, a $2,793 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $27,030 at the end of the period. (Omit cost of goods sold entries.)

Explanation / Answer

Journal Entries: S.no. Accounts title and explanations Debit $ Credit $ a. Accounts receivable Dr. 742000       Sales revenue 742000 Cash Account Dr. 711970      Accounts receivable 711970 b. Allowance for Uncollectible Account Dr. 6689       Accounts receivable 6689 c. Accounts receivable Dr. 2793      Allowance for Uuncollectible Account 2793 Cash Account Dr. 2793      Accounts recievable 2793 d. Bad debts expense Dr. 21036      Allowance for Uncollectible accounts 21036 Note: Bad debts expense for theyear Allowance balance in beginning 9,890 Less: Amount write off -6,689 Add: Reinstated write off 2,793 balance in Allowance account 5,994 Required balance in Allowance 27,030 bad debts expense 21,036 Req 2: Balance in Accounts receivable: Beginning Balance in Accounts receivable: 218900 Add: Credit sales 742000 Less: Collections -711970 Less: Amount written off -6689 Ending balance in Accounts receivable 242241 Therefore, balance in Accounts rececivable 242241 Balance in Allowance for uncollectible account 27030 Req 3: Net reaizable value of Accounts receivable: Accounts receivable (Gross) 242241 Less: Uncollectible Allowance -27030 Net realizable value of Accounts receivable 215211

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