At the beginning of the current period, Kingbird Corp. had balances in Accounts Receivable of $191,500 and in Allowance for Doubtful Accounts of $9,890 (credit). During the period, it had net credit sales of $733,600 and collections of $767,780. It wrote off as uncollectible accounts receivable of $7,149. However, a $2,957 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,440 at the end of the period. (Omit cost of goods sold entries.)

Question

Laila Newman

Business

8 December, 15:32

At the beginning of the current period, Kingbird Corp. had balances in Accounts Receivable of $191,500 and in Allowance for Doubtful Accounts of $9,890 (credit). During the period, it had net credit sales of $733,600 and collections of $767,780. It wrote off as uncollectible accounts receivable of $7,149. However, a $2,957 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,440 at the end of the period. (Omit cost of goods sold entries.)

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Miller · Answer 1

total sales should be recorded as follows:

Dr Accounts receivables 733,600

Cr Sales revenue 733,600

collections should be recorded as follows:

Dr Cash 767,780

Cr Accounts receivable 767,780

to record the write off:

Dr Allowance for uncollectible accounts 7,149

Cr Accounts receivable 7,149

the two entries needed to record the collection of previous write offs:

Dr Accounts receivables 2,957

Cr Allowance for uncollectible accounts 2,957

Dr Cash 2,957

Cr Accounts receivable 2,957

to record estimated bad debt expense for the year:

Dr Bad debt expense 19,742

Cr Allowance for uncollectible accounts 19,742