Exercise 225 At the beginning of the current period, Emler Corp. had balances in
ID: 2543439 • Letter: E
Question
Exercise 225 At the beginning of the current period, Emler Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000 (credit). During the period, it had net credit sales of $650,000 and collections of $590,000. It wrote off as uncollectible accounts receivable of $5,000. However, a $3,000 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $20,000 at the end of the period. (a) (b) (c) (d) Prepare the entries to record sales and collections during the period. Prepare the entry to record the write-off of uncollectible accounts during the period. Prepare the entries to record the recovery of the uncollectible account during the period Prepare the entry to record bad debts expense for the period (Credit account titles are automatically indented when the amount is entered. Do not indent manually. No. Account Titles and Explanation Debit Credit (To record sales on account) To record collection of accounts receivable) To reverse write-off of account) To record collection)Explanation / Answer
Account Receivable = $200,000 + $650,000 - $590,000 - $5,000 = $255,000
Allowance for Doubtful Accounts = $20,000
Net realizable value of the receivables = $255,000 - $20,000 = $235,000
No. Account Titles and Explanation Debit Credit (a) Accounts Receivable $650,000 Sales $650,000 (To record sales on account) Cash $590,000 Accounts Receivable $590,000 (To record collection of Accounts Receivable) (b) Allowance for Doubtful Accounts $5,000 Accounts Receivable $5,000 (c) Accounts Receivable $3,000 Allowance for Doubtful Accounts $3,000 (To reverse write-off of account) Cash $3,000 Accounts Receivable $3,000 (To record collection) (d) Bad Debt Expense $13,000 Allowance for Doubtful Accounts $13,000Related Questions
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