Question

At the beginning of the current period, Bramble had balances in Accounts Receivable of $276,000 and in Allowance for Doubtful Accounts of $8,000 (credit). During the period, it had net credit sales of $845,000 and collections of $802,750. It wrote off as uncollectible accounts receivable of $6,100. However, a $4,000 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.)

(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 for transaction A to record sales	enter a debit amount	enter a credit amount
	enter an account title for transaction A to record sales	enter a debit amount	enter a credit amount
	(To record sales)
	enter an account title for transaction A	enter a debit amount	enter a credit amount
	enter an account title for transaction A	enter a debit amount	enter a credit amount
	(To record cash collected during the period)
(b)	enter an account title for transaction B	enter a debit amount	enter a credit amount
	enter an account title for transaction B	enter a debit amount	enter a credit amount
(c)	enter an account title for transaction C to reinstate account previously written off	enter a debit amount	enter a credit amount
	enter an account title for transaction C to reinstate account previously written off	enter a debit amount	enter a credit amount
	(To reinstate account previously written off)
	enter an account title for transaction C	enter a debit amount	enter a credit amount
	enter an account title for transaction C	enter a debit amount	enter a credit amount
	(To record the recovery of the uncollectible account during the period)
(d)	enter an account title for transaction D	enter a debit amount	enter a credit amount
	enter an account title for transaction D	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.

Ending balance in Accounts Receivable		$enter a dollar amount
Ending balance in Allowance for Doubtful Accounts		$enter a dollar amount

eTextbook and Media

List of Accounts

What is the net realizable value of the receivables at the end of the period?

The net realizable value of the receivables at the end of the period

$

Answer 1

Date	Account titles & Explanations				Debit	Credit
a)	Account receivable				845,000
	sales					845,000
	Cash				802,750
	Account reeceivable					802,750
b)	Allowance for Doubtful accounts				6,100
	Account receivable					6,100
c)	Account receivable				4,000
	Allowance for Doubtful accounts					4,000
	Cash				4,000
	Account receivable					4,000
d)	Bad debts expense				18100
	Allowance for Doubtful accounts					18,100
	24000-(8000-6100+4000)
	Ending balance in accounts receivable						312,150
	Ending balance in allowance for doubtful accounts						24,000
	Net realizable Value of the receivables at the end of the period						288,150