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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 uncollectible accounts 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 uncollectible accounts during the period

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you help me with A,b,c,e and f?
At the beginning of period, Ammar Co. had balances in account receivable of $ 400,000 and allowance for doubtful accounts of $ 12,000 (credit). During the period, it had net credit sales of $ 1,200,000 and collections of $ 1,050,000. It wrote as uncollectible accounts receivable of $ 9,500. However, a $4,500 account previously written off as uncollectible was recovered at the end of period. Uncollectible accounts are estimated to total $35,000 at the end of 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 uncollectible accounts during the period d. Prepare the entry to record bad debt expense for the period e. Determine the ending balances in account receivable and allowance for doubtful accounts f. Determine the net realizable value
Transcribed Image Text:At the beginning of period, Ammar Co. had balances in account receivable of $ 400,000 and allowance for doubtful accounts of $ 12,000 (credit). During the period, it had net credit sales of $ 1,200,000 and collections of $ 1,050,000. It wrote as uncollectible accounts receivable of $ 9,500. However, a $4,500 account previously written off as uncollectible was recovered at the end of period. Uncollectible accounts are estimated to total $35,000 at the end of 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 uncollectible accounts during the period d. Prepare the entry to record bad debt expense for the period e. Determine the ending balances in account receivable and allowance for doubtful accounts f. Determine the net realizable value
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