At the beginning of the current period, Emler Corp. had balancesin Accounts Receivable of...

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Accounting

At the beginning of the current period, Emler Corp. had balancesin Accounts Receivable of $200,000 and in Allowance for DoubtfulAccounts of $9,000 (credit). During the period, it had net creditsales of $650,000 and collections of $590,000. It wrote off asuncollectible accounts receivable of $5,000. However, a $3,000account previously written off as uncollectible was recoveredbefore the end of the current period. Uncollectible accounts areestimated to total $20,000 at the end of the period.
Instructions
(a)     Prepare the entries to record salesand collections during the period.
(b)     Prepare the entry to record thewrite-off of uncollectible accounts during the period.
(c)     Prepare the entries to record therecovery of the uncollectible account during the period.
(d)     Prepare the entry to record baddebts expense for the period.
(e)     Determine the ending balances inAccounts Receivable and Allowance for Doubtful Accounts.
(f)     Calculate the net realizable valueof the receivables at the end of the period.

Answer & Explanation Solved by verified expert

3.9 Ratings (752 Votes)

a Dr Accounts Receivable 650000 Cr Sales 650000 Dr Cash 590000 Cr Accounts Receivable 590000 b Dr Allowance for Doubtful Accounts 5000 Cr Accounts Receivable See Answer

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Transcribed Image Text

In: AccountingAt the beginning of the current period, Emler Corp. had balancesin Accounts Receivable of $200,000...At the beginning of the current period, Emler Corp. had balancesin Accounts Receivable of $200,000 and in Allowance for DoubtfulAccounts of $9,000 (credit). During the period, it had net creditsales of $650,000 and collections of $590,000. It wrote off asuncollectible accounts receivable of $5,000. However, a $3,000account previously written off as uncollectible was recoveredbefore the end of the current period. Uncollectible accounts areestimated to total $20,000 at the end of the period.Instructions(a) Prepare the entries to record salesand collections during the period.(b) Prepare the entry to record thewrite-off of uncollectible accounts during the period.(c) Prepare the entries to record therecovery of the uncollectible account during the period.(d) Prepare the entry to record baddebts expense for the period.(e) Determine the ending balances inAccounts Receivable and Allowance for Doubtful Accounts.(f) Calculate the net realizable valueof the receivables at the end of the period.