Please find (d), (e), and (f). Exercise 8-3 Your answer is partially correct. Tr
ID: 2477946 • Letter: P
Question
Please find (d), (e), and (f).
Exercise 8-3 Your answer is partially correct. Try again At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $248,700 and in Allowance for Doubtful Accounts of $8,700 (credit). During the period, it had net credit sales of $842,000 and collections of $782,000. It wrote off as uncollectible accounts receivable of $7,600. 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 $24,800 at the end of the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (D Prepare the entry to recoc e-of of uniclecdibie a chounti during the period (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.Explanation / Answer
(d) To find out the Bad Debt Expenses of the period, we need to prepare Allowance for Doubtful Account
Note 1: Allowance for Doubtful Account
Allowance for Doubtful Account
Amount
Amount
By beginning balance
$8,700
To Accounts Receivable (Wrote off uncollectible)
$7,600
By Accounts Receivables
$4,000
To Ending Balance
$24,800
By Bad Debt Expenses (balancing figure pertains to Allowance for doubtful account created during the year)
$19,700
$32,400
$32,400
Journal Entry
Bad Debt Expenses Dr. $19,700
To Allowance for Doubtful Account $19,700
(e)
Ending Balance in Account Receivable (refer note 2) = $308,700
Ending balance in Allowance for Doubtful Accounts (given and refer note 1) = $24,800
Note 2: Account Receivable
Accounts Receivable
Amount
Amount
To beginning balance
$248,700
By Cash (collection)
$782,000
To Credit Sales
$842,000
By Cash (Recovery of Written of Uncollectible)
$4,000
To Allowance for Doubtful Debts (Recovery of Written of Uncollectible)
$4,000
By Ending balance
$308,700
$1,094,700
$1,094,700
(f)
Net Realizable Value of the receivables at the end of the period = Ending Balance of Accounts Receivable – Ending Balance of Allowance for Doubtful Account
= $308,700 - $24,800
= $283,900
Allowance for Doubtful Account
Amount
Amount
By beginning balance
$8,700
To Accounts Receivable (Wrote off uncollectible)
$7,600
By Accounts Receivables
$4,000
To Ending Balance
$24,800
By Bad Debt Expenses (balancing figure pertains to Allowance for doubtful account created during the year)
$19,700
$32,400
$32,400