E8-3 Journalize receivables transactions . (LO 2 , 3 ), AP At the beginning of t
ID: 2377357 • Letter: E
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E8-3 Journalize receivables transactions. (LO 2, 3), AP At the beginning of the current period, Griffey 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 $800,000 and collections of $763,000. It wrote off as uncollectible accounts receivable of $7,300. However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,000 at the end of the period. (Omit cost of goods sold entries.) Instructions 1. Prepare the entries to record sales and collections during the period. 2. Prepare the entry to record the write-off of uncollectible accounts during the period. 3. Prepare the entries to record the recovery of the uncollectible account during the period. 4. Prepare the entry to record bad debt expense for the period. 5. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. 6. What is the net realizable value of the receivables at the end of the period? Journalize receivables transactions. (LO 2, 3), AP At the beginning of the current period, Griffey 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 $800,000 and collections of $763,000. It wrote off as uncollectible accounts receivable of $7,300. However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,000 at the end of the period. (Omit cost of goods sold entries.) Journalize receivables transactions. (LO 2, 3), AP At the beginning of the current period, Griffey 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 $800,000 and collections of $763,000. It wrote off as uncollectible accounts receivable of $7,300. However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,000 at the end of the period. (Omit cost of goods sold entries.) Journalize receivables transactions. (LO 2, 3), AP Journalize receivables transactions. (LO 2, 3), AP Instructions 1. Prepare the entries to record sales and collections during the period. 2. Prepare the entry to record the write-off of uncollectible accounts during the period. 3. Prepare the entries to record the recovery of the uncollectible account during the period. 4. Prepare the entry to record bad debt expense for the period. 5. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. 6. What is the net realizable value of the receivables at the end of the period? Instructions 1. Prepare the entries to record sales and collections during the period. 2. Prepare the entry to record the write-off of uncollectible accounts during the period. 3. Prepare the entries to record the recovery of the uncollectible account during the period. 4. Prepare the entry to record bad debt expense for the period. 5. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. 6. What is the net realizable value of the receivables at the end of the period? 1. Prepare the entries to record sales and collections during the period. Prepare the entries to record sales and collections during the period. 2. Prepare the entry to record the write-off of uncollectible accounts during the period. Prepare the entry to record the write-off of uncollectible accounts during the period. 3. Prepare the entries to record the recovery of the uncollectible account during the period. Prepare the entries to record the recovery of the uncollectible account during the period. 4. Prepare the entry to record bad debt expense for the period. Prepare the entry to record bad debt expense for the period. 5. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. 6. What is the net realizable value of the receivables at the end of the period? What is the net realizable value of the receivables at the end of the period? E8-3 Journalize receivables transactions. (LO 2, 3), AP At the beginning of the current period, Griffey 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 $800,000 and collections of $763,000. It wrote off as uncollectible accounts receivable of $7,300. However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,000 at the end of the period. (Omit cost of goods sold entries.) Instructions 1. Prepare the entries to record sales and collections during the period. 2. Prepare the entry to record the write-off of uncollectible accounts during the period. 3. Prepare the entries to record the recovery of the uncollectible account during the period. 4. Prepare the entry to record bad debt expense for the period. 5. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. 6. What is the net realizable value of the receivables at the end of the period?Explanation / Answer
(a) Prepare the entries to record sales and collections during the periodDr AR $800,000
Cr Sales $800,000
Dr Cash $743,000
Cr AR $743,000
(b) Prepare the entry to record the write-off of uncollectible accounts during the period
Dr ADA $7,000
Cr AR $7,000
(c) Prepare the entries to record the recovery of the uncollectible account during the
period
Dr AR $4,000
Cr ADA $4,000
Dr Cash $4,000
Cr AR $4,000
(d) Prepare the entry to record bad debts expense for the period
Dr Bad debts expense $19,000
Cr ADA $19,000
(e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful
Accounts
AR account:
Opening bal. $200,000
+ Sales $800,000
- Collections $743,000
- Written off $7,000
+ Reinstate bad debt $4,000
- Collected bad debt $4,000
= Ending bal. $250,000
ADA account:
Opening bal. $9,000
- Written off $7,000
+ Reinstate bad debt $4,000
+ Bad debts expense $19,000
= Ending bal. $25,000
(f) What is the net realizable value of the receivables at the end of the period?
Nrv = AR - ADA = $250,000 - $25,000 = $225,000 (a) Prepare the entries to record sales and collections during the period
Dr AR $800,000
Cr Sales $800,000
Dr Cash $743,000
Cr AR $743,000
(b) Prepare the entry to record the write-off of uncollectible accounts during the period
Dr ADA $7,000
Cr AR $7,000
(c) Prepare the entries to record the recovery of the uncollectible account during the
period
Dr AR $4,000
Cr ADA $4,000
Dr Cash $4,000
Cr AR $4,000
(d) Prepare the entry to record bad debts expense for the period
Dr Bad debts expense $19,000
Cr ADA $19,000
(e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful
Accounts
AR account:
Opening bal. $200,000
+ Sales $800,000
- Collections $743,000
- Written off $7,000
+ Reinstate bad debt $4,000
- Collected bad debt $4,000
= Ending bal. $250,000
ADA account:
Opening bal. $9,000
- Written off $7,000
+ Reinstate bad debt $4,000
+ Bad debts expense $19,000
= Ending bal. $25,000
(f) What is the net realizable value of the receivables at the end of the period?
Nrv = AR - ADA = $250,000 - $25,000 = $225,000
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