Assume the following information for Tamarisk Corp. Accounts receivable (beginning balance) $151,000 Allowance for doubtful accounts (beginning balance) 11,500 Net credit sales 950,000 Collections 907,000 Write-offs of accounts receivable 5,600 Collections of accounts previously written off 1,600 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. Part 1 Prepare the entries to record sales and collections during the period.
Assume the following information for Tamarisk Corp.
Allowance for doubtful accounts (beginning balance) 11,500
Net credit sales 950,000 Collections 907,000
Write-offs of accounts receivable 5,600
Collections of accounts previously written off 1,600
Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable.
Part 1
Prepare the entries to record sales and collections during the period.
Account Titles and Explanation Debit Credit
(To record sales on account)
(To record collection of accounts receivable)
Part 2
Prepare the entry to record the write-off of uncollectible accounts during the period.
Account Titles and Explanation Debit Credit
Part 3
Prepare the entries to record the recovery of the uncollectible account during the period.
Account Titles and Explanation Debit Credit
(To reverse write-off of accounts receivable)
(To record collection of accounts receivable)
Part 4
Determine the ending balance in Accounts Receivable and the unadjusted balance in Allowance for Doubtful Accounts.
Ending balance in Accounts Receivable
Unadjusted balance in Allowance for Doubtful Accounts
Part 5
Prepare the entry to record
Account Titles and Explanation Debit Credit
Determine the ending (adjusted) balance in Allowance for Doubtful Account
Ending (adjusted) balance in Allowance for Doubtful Accounts
Bed Debit Expense NOT Doubtful Accounts Expense Calculate this way PL
Allowance for doubtful accounts
Part 6
Determine the ending (adjusted) balance in Allowance for Doubtful Accounts.
Ending (adjusted) balance in Allowance for Doubtful Accounts
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