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Exercise 8-3At the beginning of the current period, Coronado Industries had balances in Accounts Receivable of $211,000 and in Allowance for Doubtful Accounts of $8,910 (credit). During the period, it had net credit sales of $777,300 and collections of $764,980. It wrote off as uncollectible accounts receivable of $8,009. However, a $2,977 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $23,630 at the end of the period. (Omit cost of goods sold entries.)WarningDon't show me this message again for the assignmentOk Cancel Exercise 8-3 At the beginning of the current perioExercise 8-3 At the beginning of the current perio (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.

Answer :

Answer:

The journal entries are as follows:

(a) (i)

Accounts receivable A/c    Dr. $777,300

To sales revenue                                        $777,300

(To record sales)

(ii) Cash A/c    Dr. $764,980

To Accounts receivable        $764,980

(To record collections)

(b) Allowance for doubtful accounts     Dr. $8,009

To Accounts receivable                                             $8,009

(To record the write-off of uncollectible accounts)

(c) (i) Accounts receivable A/c     Dr. $2,977

To Allowance for doubtful accounts               $2,977

(To reinstate account previously written off)

(ii) Cash A/c    Dr. $2,977

To Accounts receivable        $2,977

(To record the recovery of the uncollectible account)

(d) Bad dept expense A/c     Dr. $5,032

To Allowance for doubtful accounts        $5,032

(To record bad debt expense for the period)

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