Question

Show Attempt History Current Attempt in Progress 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 net 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. (Omit cost of goods sold entries.) - Your answer is partially correct. (a) Prepare the entries to record sales and collections during the period. (6) 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 amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) Accounts Receivable 864300 sales 864300 (To record sales)

please show the steps

Answer 1

1.

Credit No. (a) Debit 864,300 Account title and explanation Accounts receivable Sales revenue (To record sales) 864,300 687,610 Cash Accounts receivable 687,610 (b) 6,804 Allowance for doubtful accounts Accounts receivable 6,804 (c) 3,219 Accounts receivable Allowance for doubtful accounts (To reinstate accounts previously written off) 3.219 3,219 Cash Accounts receivable 3.219 (d) 18,075 Bad debt expense Allowance for doubtful accounts 18,075 Working note for (d): Bad debt expense = 24,000 - (9,510-6,804+3,219) =18,075

2.

Ending balance in accounts receivable =196,800+864,300-687,610-6,804+3,219-3,219 =366,686 Ending balance in allowance account = 24,000

3.

Net realizable value of the accounts receivable at the end of the period = 366,686-24,000 =342,686.