Question

At the beginning of the current period, Tamarisk, Inc. had balances in Accounts Receivable of $187,100 and in Allowance for Doubtful Accounts of $8,500 (credit). During the period, it had net credit sales of $767,100 and collections of $699,230. It wrote off as uncollectible accounts receivable of $7,528. However, a $3,284 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,620 at the end of the period. (Omit cost of goods sold entries.)

(a - d)

(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.

(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(a)	Enter an account title to record sales	Enter a debit amount	Enter a credit amount
	Enter an account title to record sales	Enter a debit amount	Enter a credit amount
	(To record sales)
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
(b)	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
(c)	Enter an account title to reinstate account previously written off	Enter a debit amount	Enter a credit amount
	Enter an account title to reinstate account previously written off	Enter a debit amount	Enter a credit amount
	(To reinstate account previously written off)
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
(d)	Enter an account title

Answer 1

(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(a)	Account receivable	767100
	Sales revenue		767100
	(To record sales)
	Cash	699230
	Account receivable		699230
(b)	Allowance for doubtful accounts	7528
	Account receivable		7528
(c)	Account receivable	3284
	Allowance for doubtful accounts		3284
	(To reinstate account previously written off)
	Cash	3284
	Account receivable		3284
d)	Bad debt expense (26620-4256)	22364
	Allowance for doubtful accounts		22364