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answerhappygod
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Question 3 (Total of 7.50 marks) At the beginning of the current period, Huang Co. had a balance of $100,000 in Accounts Receivable and a $7,000 credit balance in Allowance for Doubtful Accounts. In the period, it had net credit sales of $400,000 and collections of $361,500. It wrote off accounts receivable of $10,500 as uncollectible. After a $1,750 account was written off as uncollectible, it was subsequently collected. This is in addition to the other cash collections. Based on an aging schedule, uncollectible accounts are estimated to be $8,000 at the end of the period. Instructions 1. Prepare the journal entries to record sales and collections in the period. Ignore any inventory, cost of goods sold, and refund liability for the purposes of this question. Please note, the dates are also not required for your journal entries. (2.5 marks) 2. Prepare the journal entry to record the write off of uncollectible accounts in the period. (1.25 marks) 3. Prepare the journal entry/entries to record the collection of the account previously written off as uncollectible. (2.50 marks) 4. Prepare the journal entry to record the bad debt expense adjusting entry for the period. (1.25 marks)
question:
Question 3 (Total of 7.50 marks) At the beginning of the current period, Huang Co. had a balance of $100,000 in Accounts Receivable and a $7,000 credit balance in Allowance for Doubtful Accounts. In the period, it had net credit sales of $400,000 and collections of $361,500. It wrote off accounts receivable of $10,500 as uncollectible. After a $1,750 account was written off as uncollectible, it was subsequently collected. This is in addition to the other cash collections. Based on an aging schedule, uncollectible accounts are estimated to be $8,000 at the end of the period. Instructions 1. Prepare the journal entries to record sales and collections in the period. Ignore any inventory, cost of goods sold, and refund liability for the purposes of this question. Please note, the dates are also not required for your journal entries. (2.5 marks) 2. Prepare the journal entry to record the write off of uncollectible accounts in the period. (1.25 marks) 3. Prepare the journal entry/entries to record the collection of the account previously written off as uncollectible. (2.50 marks) 4. Prepare the journal entry to record the bad debt expense adjusting entry for the period. (1.25 marks)