Question

At the beginning of the current period, Swifty Corporation had balances in Accounts Receivable of $195,100 and in Allowance for Doubtful Accounts of $9,350 (credit). During the period, it had net credit sales of $745,500 and collections of $835,120. It wrote off as uncollectible accounts receivable of $7,831. However, a $3,184 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,100 at the end of the period. (Omit cost of goods sold entries.)
(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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

(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?

Answer 1

Answer:

accounts receivables 745,500 debit

        sales revenues            745,500 credit

cash                          835,120 debit

         accounts receivables   835,120 credit

allowance for uncollectible amount 7,831 credit

       accounts receivables                         7,831 credit

accounts receivables   3,184 debit

  allowance for uncollectible ammount 3,184 credit

uncollectible amount expense 19,397 debit

  allowance for uncollectible amount 19,397 credit

net receivables 76.733‬

Explanation:

Allowance balance before adjustment:

9,350 - 7,831 + 3,184 = 4,703

estimated uncollectible amount within our accounts receivables 24,100

adjusmtent 24,100 - 4,703 = 19,397

net account receivables:

195,100

+ 745,500 sales on account

- 835,120 collected

-7,831 write-off

+3,184 recovery

-24,100 allowance

76.733‬