) Record sales and collections during the period. Record the write-off of uncollectible accounts during the period. E Record bad debt expense for the period.
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.
![At the beginning of the current period, Whispering Winds Corp. had balances in Accounts
Receivable of $200,600 and in Allowance for Doubtful Accounts of $9,630. During the period, it
had net credit sales of $770,000 and collections of $746,470. It wrote off as uncollectible
accounts receivable of $7,481. Uncollectible accounts are estimated to total $22,900 at the end
of the period. (Omit recording cost of goods sold.)
Enter the beginning balances for Accounts Receivable and Allowance for Doubtful Accounts in a
tabular summary. Use the summary to record transactions (a), (b), and (c) below.
(a) Record sales and collections during the period.
(b) Record the write-off of uncollectible accounts during the period
(c) Record bad debt expense for the period.
(Enter negative amounts using either a negative sign preceding the number e.g. -45 or
parentheses e.g. (45).)
Liabili
ties
Assets
Stockholders' Equity
Allow.
Retained Earnings
For
Doubtf
Comm
Accts.
Cash
ul
on
Rev.
Exp.
Rec.
Accts
Stock
Be
$
$
$
g.
Ва
(b
(c
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![Determine the ending balances in Accounts Receivable and Allowance for Doubtful
Accounts. (Enter negative amounts using either a negative sign preceding the number
e.g. -45 or parentheses e.g. (45).)
Ending balance in Accounts Receivable
Ending balance in Allowance for Doubtful Accounts
What is the net realizable value of the receivables at the end of the period?
The net realizable value of the receivables at the end of the period $
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