On January 1, 2025, Larkspur Corporation started the year with a balance in Accounts Receivable of $141,000 and a credit balance in Allowance for Doubtful Accounts of $8,150. During 2025, the company had total sales of $590,000; 80% of these sales were credit sales. Collections (not including the cash sales) during the period were $502.000. Larkspur wrote off as uncollectible accounts receivable of $8,900. In addition, an account of $870 that was previously written off an uncollectible was recovered during the year. Uncollectible accounts are estimated to be 5% of the end-of-year Accounts Receivable balance. (Omit cost of goods sold entries.) (a) Prepare the entries to record sales and collections during the period. (Omit cost of goods sold entries.) (List all debit entries before crédit entries. Credit account titles are automatically indented when the 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) Account Titles and Explanation Debit Credit

On January 1, 2025, Larkspur Corporation started the year with a balance in Accounts Receivable of $141,000 and a credit balance in Allowance for Doubtful Accounts of $8,150. During 2025, the company had total sales of $590,000; 80% of these sales were credit sales. Collections (not including the cash sales) during the period were $502.000. Larkspur wrote off as uncollectible accounts receivable of $8,900. In addition, an account of $870 that was previously written off an uncollectible was recovered during the year. Uncollectible accounts are estimated to be 5% of the end-of-year Accounts Receivable balance. (Omit cost of goods sold entries.) (a) Prepare the entries to record sales and collections during the period. (Omit cost of goods sold entries.) (List all debit entries before crédit entries. Credit account titles are automatically indented when the 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) Account Titles and Explanation Debit Credit

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

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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

On January 1, 2025, Larkspur Corporation started the year with a balance in Accounts Receivable of $141,000 and a credit balance in
Allowance for Doubtful Accounts of $8,150. During 2025, the company had total sales of $590,000; 80% of these sales were credit
sales. Collections (not including the cash sales) during the period were $502.000. Larkspur wrote off as uncollectible accounts
receivable of $8,900. In addition, an account of $870 that was previously written off an uncollectible was recovered during the year.
Uncollectible accounts are estimated to be 5% of the end-of-year Accounts Receivable balance. (Omit cost of goods sold entries.)
(a)
Prepare the entries to record sales and collections during the period. (Omit cost of goods sold entries.) (List all debit entries before
crédit entries. Credit account titles are automatically indented when the 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.)
Account Titles and Explanation
Debit
Credit

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