Exercise 8-04Assume the following information for Teal Mountain Corp.Accounts receivable (beginning balance) $159,000Allowance for doubtful accounts (beginning balance) 11,470Net credit sales 944,000Collections 906,000Write-offs of accounts receivable 5,400Collections of accounts previously written off 2,000Uncollectible accounts are expected to be 8% 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)    SHOW LIST OF ACCOUNTSLINK TO TEXT   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        SHOW LIST OF ACCOUNTSLINK TO TEXT   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)    SHOW LIST OF ACCOUNTSLINK TO TEXT   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 $   SHOW LIST OF ACCOUNTSLINK TO TEXT   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        SHOW LIST OF ACCOUNTSLINK TO TEXT   Determine the ending (adjusted) balance in Allowance for Doubtful Accounts.Ending (adjusted) balance in Allowance for Doubtful Accounts $

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Asked Oct 28, 2019
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Exercise 8-04

Assume the following information for Teal Mountain Corp.

Accounts receivable (beginning balance)   $159,000
Allowance for doubtful accounts (beginning balance)   11,470
Net credit sales   944,000
Collections   906,000
Write-offs of accounts receivable   5,400
Collections of accounts previously written off   2,000

Uncollectible accounts are expected to be 8% 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)    
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
 
 
 
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
 
 
 
 
 
 
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
 
 
 
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)
   
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
 
 
 
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   $
 
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
 
 
 
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
 
 
 
 
 
 
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
 
 
 
Determine the ending (adjusted) balance in Allowance for Doubtful Accounts.

Ending (adjusted) balance in Allowance for Doubtful Accounts   $
 
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Expert Answer

Step 1

Prepare journal entries of sales, collections, write off, and reverse entries:

 

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Step 2

Calculate ending balance of accounts receivable and unadjusted ending balance of allowance for doubtful accounts:

 

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Step 3

Prepare journal entry to record bad debt e...

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