At the beginning of the year, the Dallas Company had the following accounts on its books:Accounts Receivable$264,000DebitAllowance for Doubtful Accounts$16,500CreditDuring the year, credit sales were $2,346,000 and collections on account were $2,350,000. The following transactions, among others, occurred during the year:Feb.17Wrote off R. St. John’s account,$7,500May.28Wrote off G. Herberger’s account,$4,800Oct.13Received $1,200 from G. Herberger, who is in bankruptcy proceedings, in final settlement of the account written off on May 28. This amount is not included in the $2,350,000 collections. Dec.15Wrote off R. Clancy’s account,$5,000Dec.31In an adjusting entry, recorded the allowance for doubtful accounts at0.8% of credit sales for the year. Requireda. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment. b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.a.General JournalDateDescriptionDebitCreditDec.31AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer To record credit sales for the year. Dec.31AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer To record collections on account for the year. Feb.17AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer To write off R. St. John's account. May.28AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer To write off G. Herberger's account. Oct.13AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer To reinstate G. Herberger's account for partial recovery. Oct.13AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer To record collection from G. Herberger. Dec.15AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer To write-off R. Clancy's account. Dec.31AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales RevenueAnswerAnswer To record allowance for doubtful accounts. b. Do not use negative signs with your answers. Accounts ReceivableAnswer Less: Allowance for Doubtful AccountsAnswer Answer

In This Numerical Has Covered The Concept of Accounts Receivable.

Answered: At the beginning of the year, the…

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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Question

At the beginning of the year, the Dallas Company had the following accounts on its books:

Accounts Receivable	$264,000	Debit
Allowance for Doubtful Accounts	$16,500	Credit

During the year, credit sales were $2,346,000 and collections on account were $2,350,000. The following transactions, among others, occurred during the year:

Feb.17	Wrote off R. St. John’s account,	$7,500
May.28	Wrote off G. Herberger’s account,	$4,800
Oct.13	Received $1,200 from G. Herberger, who is in bankruptcy proceedings,
	in final settlement of the account written off on May 28.
	This amount is not included in the $2,350,000 collections.
Dec.15	Wrote off R. Clancy’s account,	$5,000
Dec.31	In an adjusting entry, recorded the allowance for doubtful accounts at	0.8%
	of credit sales for the year.

Required
a. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment.

b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.

a.

General Journal
Date	Description	Debit	Credit
Dec.31	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record credit sales for the year.
Dec.31	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record collections on account for the year.
Feb.17	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write off R. St. John's account.
May.28	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write off G. Herberger's account.
Oct.13	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To reinstate G. Herberger's account for partial recovery.
Oct.13	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record collection from G. Herberger.
Dec.15	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write-off R. Clancy's account.
Dec.31	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record allowance for doubtful accounts.

b. Do not use negative signs with your answers.

	Accounts Receivable	Answer
	Less: Allowance for Doubtful Accounts	Answer
		Answer

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