Problem 8-2A At December 31, 2016, Martinez Corp. Imports reported this informat
ID: 2553248 • Letter: P
Question
Problem 8-2A At December 31, 2016, Martinez Corp. Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $627,200 37,300 During 2017, the company had the following transactions related to receivables. 1. 2. 3. 4. 5. Sales on account Sales returns and allowances Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible Recovery of bad debts previously written off as uncollectible $2,936,400 94,480 2,528,500 41,620 16,440 Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. Debit CreditExplanation / Answer
Solution:-
(1) A/c Receivable A/c Dr 2936400
To Sales 2936400
(2) Sales Dr 94480
To A/c Receivable 94480
(3) Cash Dr 2528500
To A/c Receivable 2528500
(4) Bad Debts 41620
To A/c Receivable 41620
(5) Cash Dr 16440
To Bad debts 16440