At the beginning of the current period, Emler Corp. had balances in Accounts Rec

Question

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) 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 peniod (d) 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.)

Explanation / Answer

(a) Entries to record sales and collections

(b)

Ending balances:

General Journal Year Particulars L.F Debit ($) Credit ($) (a) Account Receivable 650,000 Sales 650,000 (For sales recorded) (a) Cash 590,000 Account Receivable 590,000 (for cash received) (b) Allowance for doubtful accounts 5,000 Account Receivable 5,000 (For accounts written off) (c ) Account Receivable 3,000 Allowance for doubtful accounts 3,000 (For account written off reinstated) (c ) Cash 3,000 Account Receivable 3,000 (for cash received) (d) Bad debt expense 20,000 Allowance for doubtful accounts 20,000 (for bad debt created)

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