Explanation:
The Journal entry is shown below:-
a. Accounts Receivable Dr, $804,300
Sales $804,300
(To record credit sales)
Cash Dr, $839,040
Accounts Receivable $839,040
(To record the collection during the period)
b. Allowance for Doubtful Accounts Dr, $7,902
Accounts Receivable $7,902
(To record the uncollectible accounts are written off)
c. Accounts Receivable Dr, $3,002
Allowance for Doubtful Accounts $3,002
(To record written off amount)
Cash Dr, $3,002
Accounts Receivable $3,002
(To record collection amount)
d. Bad Debts Expense Dr, $18,170
Allowance for Doubtful Accounts $18,170
(To record bad debt expenses recorded)
Working Note
Allowance for Doubtful Accounts
Beginning balance $9,490
Written off $7,902
Recovery $3,002
Ending balance 22,760
Bad debts = $7,902 - $9,490 - $3,002 + $22,760
= $18,170
