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. Uncollectible accounts are estimated to total S20,000 at the end of the period, Prepare the entries to record sales during the period. Prepare the entries to record collections during the period. Prepare the entry' to record bad debts expense for the period.

Explanation / Answer

Journal Entries Particulars Debit Credit Accounts Receivables 650000 Sales 650000 (Credit sales during the period) Cash 590000 Accounts Receivables 590000 (A/R collections during the period) Bad Debt exp. 11000 Allowance for doubtful account 11000 (bad debt exp. Booked) Note Allowance for doubtful account estimated at end of period 20000 Less : Allowance for doubtful account balance at the beginning 9000 Hence Bad Debt exp. For the period 11000

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