Ask Question
18 January, 03:03

At the beginning of the current period, Bramble Corp. had balances in Accounts Receivable of $196,800 and in Allowance for Doubtful Accounts of $9,510 (credit). During the period, it had credit sales of $864,300 and collections of $687,610. It wrote off as uncollectible accounts receivable of $6,804. However, a $3,219 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,000 at the end of the period.

(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.

+1
Answers (1)
  1. 18 January, 03:31
    0
    Answer and Explanation:

    The journal entries are shown below:

    a. Account receivable Dr $864,300

    To Sales revenue $864,300

    (Being the sales revenue is recorded)

    Cash Dr $687,610

    To Account receivable $687,610

    (Being the collections is recorded)

    2. Allowance for doubtful debts $6,804

    To Account receivable $6,804

    (Being the written off amount is recorded)

    3. Account receivable Dr $3,219

    To Allowance for doubtful debts $3,219

    (Being the previous written off amount is recorded)

    Cash Dr $3,219

    To Account receivable $3,219

    (Being the recovery is recorded)

    4. Bad debt expense $18,075

    To Allowance for doubtful debts $18,075

    (Being the bad debt expense is recorded)

    The computation is shown below:

    = $24,000 - $9,510 + $6,804 - $3,219

    = $18,075

    Only these entries are recorded
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “At the beginning of the current period, Bramble Corp. had balances in Accounts Receivable of $196,800 and in Allowance for Doubtful ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers