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1 September, 19:10

Assume the following information for Kingbird Corp. Accounts receivable (beginning balance) $139,000 Allowance for doubtful accounts (beginning balance) 11,370 Net credit sales 944,000 Collections 908,000 Write-offs of accounts receivable 5,300 Collections of accounts previously written off 1,800

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  1. 1 September, 21:00
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    Prepare journal entries of sales, collections, write offs of accounts receivable, and reverse entries:

    Date Account details and explanations Debit Credit

    Accounts receivable 944,000

    sales revenue 944,000

    Allowance for doubtful accounts 5300

    Accounts receivable 5300

    Accounts receivable 1800

    Allowance for doubtful accounts 1800

    cash 1800

    Accounts receivable 1800

    Calculating the ending balance of accounts receivable and unadjusted ending balance of allowance for doubtful accounts:

    particulars Amount ($)

    beginning balance of accounts receivable 139,000

    Add: Net credit sales 944,000

    less : Collections 908,000

    Write-offs 5,300

    Add: Reinstated amount 1800

    less: Collections 1800

    Ending balance of accounts receivable 169700

    particulars Amount ($)

    beginning balance of doubtful accounts 11,370

    less : Write-offs 5300

    Add: Reinstated amount 1800

    Ending balance of unadjusted balance 7870

    allowance of doubtful accounts

    Preparing journal entry to record bad debt

    Date Account details and explanations Debit Credit

    Bad debt expense (169700*8%) - 7870 12789

    allowance of doubtful accounts 12789
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