At the beginning of the current period, coronado industries had balances in accounts receivable of $211,000 and in allowance for doubtful accounts of $8,910 (credit). during the period, it had net credit sales of $777,300 and collections of $764,980. it wrote off as uncollectible accounts receivable of $8,009. however, a $2,977 account previously written off as uncollectible was recovered before the end of the current period. uncollectible accounts are estimated to total $23,630 at the end of the period. (omit cost of goods sold entries.)
warning

don't show me this message again for the assignment

ok cancel

exercise 8-3 at the beginning of the current perio

exercise 8-3 at the beginning of the current perio
(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.
(credit account titles are automatically indented when amount is entered. do not indent manually.)
no.

account titles and explanation

debit

credit

(a)

(to record sales)

(b)

(c)

(to reinstate account previously written off)

(d)

warning

don't show me this message again for the assignment

ok cancel

exercise 8-3 at the beginning of the current perio

exercise 8-3 at the beginning of the current perio
determine the ending balances in accounts receivable and allowance for doubtful accounts.
ending balance in accounts receivable $

ending balance in allowance for doubtful accounts $

warning

don't show me this message again for the assignment

ok cancel

exercise 8-3 at the beginning of the current perio

exercise 8-3 at the beginning of the current perio
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 $

warning

don't show me this message again for the assignment

ok cancel

(a) Prepare the entries to record sales and collections during the period.

During the period, it had net credit sales of $777,300  

Collections of $764,980  

(b) Prepare the entry to record the write-off of uncollectible accounts during the period.

It wrote off as uncollectible accounts receivable of $8,009  

(c) Prepare the entries to record the recovery of the uncollectible account during the period.

However, a $2,977 account previously written off as uncollectible was recovered before the end of the current period.  

(d) Prepare the entry to record bad debt expense for the period.

Uncollectible accounts are estimated to total $23,630 at the end of the period.  

Dr Bad Debt Expense$ 19,752

Cr Allowance for Uncollectible Accounts$ 19,752

Explanation:

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of the estimated value.

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the value as estimated by the company.

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

arrowright

anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

arrowright

nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

arrowright