Question

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.)

Answer 1

Answer:

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