Answer and Explanation:
The Journal entry is shown below:-
a. Accounts Receivable $804,300
To Sales $804,300
(Being credit is sales recorded)
Cash Dr, $839,040
To Accounts Receivable $839,040
(Being collection during the period is recorded)
b. Allowance for Doubtful Accounts Dr, $7,902
To Accounts Receivable $7,902
(Being uncollectible accounts are written off is recorded)
c. Accounts Receivable Dr, $3,002
To Allowance for Doubtful Accounts $3,002
(Being to reinstate collected account previously written off is recorded)
Cash Dr, $3,002
To Accounts Receivable $3,002
(Being collection of previously written off is recorded)
d. Bad Debts Expense Dr, $18,170
To Allowance for Doubtful Accounts $18,170
(Being adjust allowance for doubtful accounts is recorded)
Working note:-
Allowance for Doubtful Accounts
Beginning balance $9,490
Written off $7,902 Recovery $3,002
Bad debts $18,170
Ending balance $22,760
