At the beginning of the current period, Griffey Corp. had balances in Accounts R
ID: 2447006 • Letter: A
Question
At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $238,300 and in Allowance for Doubtful Accounts of $9,400 (credit). During the period, it had net credit sales of $871,000 and collections of $780,000. It wrote off as uncollectible accounts receivable of $7,800. However, a $4,400 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,800 at the end of the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (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. (e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. (f) What is the net realizable value of the receivables at the end of the period?Explanation / Answer
Title of Account
Debit
Credit
(a)
Accounts Receivables
871000
Sales
871000
Cash
780000
Accounts Receivables
780000
(b)
Allowance for Doubtful Accounts
7800
Accounts Receivables
7800
(c)
Accounts Receivables
4400
Allowance for Doubtful Accounts
4400
Cash
4400
Accounts Receivables
4400
(d)
Bad Debts
18800
Allowance for Doubtful Accounts
18800
Title of Account
Debit
Credit
(a)
Accounts Receivables
871000
Sales
871000
Cash
780000
Accounts Receivables
780000
(b)
Allowance for Doubtful Accounts
7800
Accounts Receivables
7800
(c)
Accounts Receivables
4400
Allowance for Doubtful Accounts
4400
Cash
4400
Accounts Receivables
4400
(d)
Bad Debts
18800
Allowance for Doubtful Accounts
18800
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