Question

ASsume the following information:

Accounts receivable (beginning balance) $140,000
Allowance for doubtful accounts (beginning balance) 11,490
Net credit sales 938,000
Collections 915,000
Write-offs of accounts receivable 5,900
Collections of accounts previously written off 2,000

Uncollectible accounts are expected to be 7% of the ending balance in accounts receivable.

Prepare the entries to record sales and collection during the period.

Answer 1

Explanation:

The Journal entry is shown below:-

1. Accounts receivable Dr,           $938,000

     To Sales revenue                               $938,000

(Being Sales on account is recorded)

2. Cash Dr,                                     $915,000

     To accounts receivable                     $915,000

(Being collection of accounts receivable is recorded)