Question

At the beginning of the current period, Skysong, Inc. had balances in Accounts Receivable of $197,000 and in Allowance for Doubtful Accounts of $9,040 (credit). During the period, it had credit sales of $862,700 and collections of $838,670. It wrote off as uncollectible accounts receivable of $7,477. However, a $3,049 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,310 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
	(To record collection)
(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
	(To record collection)
(d)	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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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	862700
	Sales revenue		862700
	(To record sales)
	Cash	838670
	Account receivable		838670
	(To record collection)
(b)	Allowance for doubtful accounts	7477
	Account receivable		7477
(c)	Account receivable	3049
	Allowance for doubtful accounts		3049
	(To reinstate account previously written off)
	Cash	3049
	Account receivable		3049
	(To record collection)
(d)	Bad debt expense (26310-4612)	21698
	Allowance for doubtful accounts		21698