Accounts Receivable Dec. 31/19 Balance 74,000 380,000 407,000 2,950 210 210 Dec. 31/20 Balance 44,050 Allowance for Doubtful Accounts 2,770 Dec. 31/19 Balance 210 2,950 2,500 2,530 Dec. 31/20 Balance Required: Analyzing the information presented in the T-accounts above, identify the dollar value related to each of the following: a. Credit sales during the period. b. Collection of credit sales made during the period. c. Write-off of an uncollectible account. d. Recovery of the account previously written off. e. The adjusting entry to estimate bad debts. Dollar value a. Credit sales during the period. b. Collection of credit sales made during the period. c. Write-off of an uncollectible account. d. Recovery of the account previously written off. e. The adjusting entry to estimate bad debts.
Accounts Receivable Dec. 31/19 Balance 74,000 380,000 407,000 2,950 210 210 Dec. 31/20 Balance 44,050 Allowance for Doubtful Accounts 2,770 Dec. 31/19 Balance 210 2,950 2,500 2,530 Dec. 31/20 Balance Required: Analyzing the information presented in the T-accounts above, identify the dollar value related to each of the following: a. Credit sales during the period. b. Collection of credit sales made during the period. c. Write-off of an uncollectible account. d. Recovery of the account previously written off. e. The adjusting entry to estimate bad debts. Dollar value a. Credit sales during the period. b. Collection of credit sales made during the period. c. Write-off of an uncollectible account. d. Recovery of the account previously written off. e. The adjusting entry to estimate bad debts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
answer the following
Transcribed Image Text:Accounts Receivable
Dec. 31/19 Balance
74,000
380,000
407,000
2,950
210
210
Dec. 31/20 Balance
44,050
Allowance for Doubtful Accounts
2,770 Dec. 31/19 Balance
210
2,950 2,500
2,530 Dec. 31/20 Balance
Required:
Analyzing the information presented in the T-accounts above, identify the dollar value related to each of the following:
a. Credit sales during the period.
b. Collection of credit sales made during the period.
c. Write-off of an uncollectible account.
d. Recovery of the account previously written off.
e. The adjusting entry to estimate bad debts.
Dollar value
a. Credit sales during the period.
b. Collection of credit sales made during the period.
c. Write-off of an uncollectible account.
d. Recovery of the account previously written off.
e. The adjusting entry to estimate bad debts.
Expert Solution
Step 1
From the T Accounts, various information can be obtained.
Like,
- Credit sales will increase the accounts receivables
- Collection of accounts will decrease the accounts receivables
- Any amount that decreases the accounts receivable can be accounts receivable written off
- If an amount is on both sides of the accounts receivables account means, it was previously written off, now collected.
- Bad debt expense will increase the Allowance for Doubtful Accounts.
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