At the beginning of the current period, Griffey Corp. had balances in Accounts R
ID: 2503661 • Letter: A
Question
At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $240,500 and in Allowance for Doubtful Accounts of $8,800 (credit). During the period, it had net credit sales of $858,000 and collections of $766,000. It wrote off as uncollectible accounts receivable of $7,400. However, a $4,600 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,600 at the end of the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Explanation / Answer
(a) Prepare the entries to record sales and collections during the period
Dr AR $858,000
Cr Sales $858,000
Dr Cash $766,000
Cr AR $766,000
(b) Prepare the entry to record the write-off of uncollectible accounts during the period
Dr ADA $7,400
Cr AR $7,400
(c) Prepare the entries to record the recovery of the uncollectible account during the
period
Dr AR $4,600
Cr ADA $4,600
Dr Cash $4,600
Cr AR $4,600
(d) Prepare the entry to record bad debts expense for the period
Dr Bad debts expense $18,600
Cr ADA $18,600
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