Problem 8-2A (Part Level Submission) At December 31, 2016, Carla vista Co. Impor
ID: 2552139 • Letter: P
Question
Problem 8-2A (Part Level Submission) At December 31, 2016, Carla vista Co. Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $581,900 36,370 During 2017, the company had the following transactions related to receivables. 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible $2,965,700 67,586 2,568,800 42,560 14,110 Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. Debit 2. 3. 4. 5. (To reinstate account previously written off)Explanation / Answer
Debit Credit
1. Sales on account
Dr Accounts receivable $ 29,65,700
Cr Sales $ 29,65,700
2.Sales returns and allowances
Dr Sales returns and allowances $ 67,586
Cr Accounts receivable $ 67,586
3. Collections of accounts receivable
Dr Cash $ 25,68,800
Cr Accounts receivable $ 25,68,800
4. Write-offs of accounts receivable deemed uncollectible
Dr Allowance for doubtful accounts $ 42,560
Cr Accounts receivable $ 42,560
5. Recovery of bad debts previously written off as uncollectible
Dr Accounts receivable $ 14,110
Cr Allowance for doubtful accounts $ 14,110
(To restore the account)
Dr Cash $ 14,110
Cr Accounts receivable $ 14,110
(To record the cash collection)
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