Assume the following information for Kingbird Corp.Accounts receivable (beginning balance) $135,000Allowance for doubtful accounts (beginning balance) 11,300Net credit sales 930,000Collections 900,000Write-offs of accounts receivable 5,000Collections of accounts previously written off 1,600Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable. Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit      (To record sales on account)        (To record collection of accounts receivable)  Prepare the entry to record the write-off of uncollectible accounts during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit       Prepare the entries to record the recovery of the uncollectible account during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit      (To reverse write-off of accounts receivable)        (To record collection of accounts receivable) Determine the ending balance in Accounts Receivable and the unadjusted balance in Allowance for Doubtful Accounts.Ending balance in Accounts Receivable $ Unadjusted balance in Allowance for Doubtful Accounts $  Prepare the entry to record bad debt expense for the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit       Determine the ending (adjusted) balance in Allowance for Doubtful Accounts.Ending (adjusted) balance in Allowance for Doubtful Accounts $Type your answer here

Question
Asked Nov 24, 2019
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Assume the following information for Kingbird Corp.

Accounts receivable (beginning balance)   $135,000
Allowance for doubtful accounts (beginning balance)   11,300
Net credit sales   930,000
Collections   900,000
Write-offs of accounts receivable   5,000
Collections of accounts previously written off   1,600


Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable.

 

Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
(To record sales on account)    
 
 
 
 
 
 
(To record collection of accounts receivable)  

 

Prepare the entry to record the write-off of uncollectible accounts during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 

 

Prepare the entries to record the recovery of the uncollectible account during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
(To reverse write-off of accounts receivable)
   
 
 
 
 
 
 
(To record collection of accounts receivable)

 

Determine the ending balance in Accounts Receivable and the unadjusted balance in Allowance for Doubtful Accounts.

Ending balance in Accounts Receivable  
Unadjusted balance in Allowance for Doubtful Accounts  

 

Prepare the entry to record bad debt expense for the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 

 

Determine the ending (adjusted) balance in Allowance for Doubtful Accounts.

Ending (adjusted) balance in Allowance for Doubtful Accounts   $Type your answer here 
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Expert Answer

Step 1

Prepare the entries to record sales and collections during the period.

Account and explanation
Debit
Credit
Date
$930,000
Account receivable
Sales revenue
$930,000
(To record sales on account)
Cash
$900,000
$900,000
Account receivable
(То
receivable)
collection
record
of
accounts
help_outline

Image Transcriptionclose

Account and explanation Debit Credit Date $930,000 Account receivable Sales revenue $930,000 (To record sales on account) Cash $900,000 $900,000 Account receivable (То receivable) collection record of accounts

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Step 2

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

Date
Account and explanation
Debit
Credit
Allowance for doubtful accounts
$5,000
Account receivable
$5,000
(To record write -off of uncollectible accounts)
help_outline

Image Transcriptionclose

Date Account and explanation Debit Credit Allowance for doubtful accounts $5,000 Account receivable $5,000 (To record write -off of uncollectible accounts)

fullscreen
Step 3

Prepare the entries to record the recovery of the un...

Account and explanation
Debit
Credit
Date
Account receivable
$1,600
Allowance for doubtful account
$1,600
(To reverse write-off of accounts receivable)
Cash
$1,600
Account receivable
$1,600
(To record collection ofaccounts receivable)
help_outline

Image Transcriptionclose

Account and explanation Debit Credit Date Account receivable $1,600 Allowance for doubtful account $1,600 (To reverse write-off of accounts receivable) Cash $1,600 Account receivable $1,600 (To record collection ofaccounts receivable)

fullscreen

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