At the beginning of the current period, Crane Company had balances in Accounts R

Question

At the beginning of the current period, Crane Company had balances in Accounts Receivable of $192,800 and in Allowance for Doubtful Accounts of $8,520 (credit). During the period, it had net credit sales of $722,500 and collections of $708,940. It wrote off as uncollectible accounts receivable of $7,972. However, a $3,275 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $22,740 at the end of the period. (Omit cost of goods sold entries.)

(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.

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

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

Explanation / Answer

Journal

Net realizable value

No. Account name Debit Credit 1. Accounts receivable $722500 Sales revenue $722500 2. Cash 708940 Accounts receivable 708940 3. Allowance for Doubtful Accounts 7972 Accounts receivable 7972 4. Accounts receivable 3275 Allowance for Doubtful Accounts 3275 5. Bad debt expense (22740-3823) 18917 Allowance for Doubtful Accounts 18917

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