ASsume the following information:

Accounts receivable (beginning balance) $140,000

Allowance for doubtful accounts (beginning balance) 11,490

Net credit sales 938,000

Collections 915,000

Write-offs of accounts receivable 5,900

Collections of accounts previously written off 2,000

Uncollectible accounts are expected to be 7% of the ending balance in accounts receivable.

Prepare the entries to record sales and collection during the period.

Question

Gwendolyn Benson

Business

27 June, 02:03

ASsume the following information:

Accounts receivable (beginning balance) $140,000

Allowance for doubtful accounts (beginning balance) 11,490

Net credit sales 938,000

Collections 915,000

Write-offs of accounts receivable 5,900

Collections of accounts previously written off 2,000

Uncollectible accounts are expected to be 7% of the ending balance in accounts receivable.

Prepare the entries to record sales and collection during the period.

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Answers (1)

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Khalil Murray · Answer 1

The Journal entry is shown below:-

1. Accounts receivable Dr, $938,000

To Sales revenue $938,000

(Being Sales on account is recorded)

2. Cash Dr, $915,000

To accounts receivable $915,000

(Being collection of accounts receivable is recorded)