@ At the beginning of the current period, Metlock Corp. had balances in Accounts Receivable of $186,800 and in Allowance for Doubtful Accounts of $9,680 (credit). During the period, it had net credit sales of $872.700 and collections of $697,700. It wrote off as uncollectible accounts receivable of $6,866. However, a $2,837 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,470 at the end of the period. (Omit cost of goods sold entries.) (a-d) (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. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit SUPPORT
@ At the beginning of the current period, Metlock Corp. had balances in Accounts Receivable of $186,800 and in Allowance for Doubtful Accounts of $9,680 (credit). During the period, it had net credit sales of $872.700 and collections of $697,700. It wrote off as uncollectible accounts receivable of $6,866. However, a $2,837 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,470 at the end of the period. (Omit cost of goods sold entries.) (a-d) (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. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit SUPPORT
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
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Transcribed Image Text:@
At the beginning of the current period, Metlock Corp. had balances in Accounts Receivable of $186,800 and in Allowance for Doubtful
Accounts of $9,680 (credit). During the period, it had net credit sales of $872.700 and collections of $697,700. It wrote off as
uncollectible accounts receivable of $6,866. However, a $2,837 account previously written off as uncollectible was recovered before
the end of the current period. Uncollectible accounts are estimated to total $24,470 at the end of the period. (Omit cost of goods sold
entries.)
(a-d)
(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.
(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
No. Account Titles and Explanation
Debit
Credit
SUPPORT
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