At the beginning of the year, the Dallas Company had the following accounts on its books:

Accounts Receivable $264,000 Debit

Allowance for Doubtful Accounts $16,500 Credit

During the year, credit sales were $2,346,000 and collections on account were $2,350,000. The following transactions, among others, occurred during the year:

Feb.17 Wrote off R. St. John’s account, $7,500

May.28 Wrote off G. Herberger’s account, $4,800

Oct.13 Received $1,200 from G. Herberger, who is in bankruptcy proceedings,

in final settlement of the account written off on May 28.

This amount is not included in the $2,350,000 collections.

Dec.15 Wrote off R. Clancy’s account, $5,000

Dec.31 In an adjusting entry, recorded the allowance for doubtful accounts at 0.8%

of credit sales for the year.

Required
a. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment.

b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.

a.

General Journal

Date Description Debit Credit

Dec.31 AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

To record credit sales for the year.

Dec.31 AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

To record collections on account for the year.

Feb.17 AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

To write off R. St. John's account.

May.28 AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

To write off G. Herberger's account.

Oct.13 AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

To reinstate G. Herberger's account for partial recovery.

Oct.13 AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

To record collection from G. Herberger.

Dec.15 AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

To write-off R. Clancy's account.

Dec.31 AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue Answer Answer

To record allowance for doubtful accounts.

b. Do not use negative signs with your answers.

Accounts Receivable Answer

Less: Allowance for Doubtful Accounts Answer

Answer

Question

At the beginning of the year, the Dallas Company had the following accounts on its books:

Accounts Receivable	$264,000	Debit
Allowance for Doubtful Accounts	$16,500	Credit

During the year, credit sales were $2,346,000 and collections on account were $2,350,000. The following transactions, among others, occurred during the year:

Feb.17	Wrote off R. St. John’s account,	$7,500
May.28	Wrote off G. Herberger’s account,	$4,800
Oct.13	Received $1,200 from G. Herberger, who is in bankruptcy proceedings,
	in final settlement of the account written off on May 28.
	This amount is not included in the $2,350,000 collections.
Dec.15	Wrote off R. Clancy’s account,	$5,000
Dec.31	In an adjusting entry, recorded the allowance for doubtful accounts at	0.8%
	of credit sales for the year.

Required
a. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment.

b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.

a.

General Journal
Date	Description	Debit	Credit
Dec.31	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record credit sales for the year.
Dec.31	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record collections on account for the year.
Feb.17	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write off R. St. John's account.
May.28	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write off G. Herberger's account.
Oct.13	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To reinstate G. Herberger's account for partial recovery.
Oct.13	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record collection from G. Herberger.
Dec.15	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write-off R. Clancy's account.
Dec.31	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - G. HerbergerAccounts Receivable - R. ClancyAccounts Receivable - R. St. JohnAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record allowance for doubtful accounts.

b. Do not use negative signs with your answers.

	Accounts Receivable	Answer
	Less: Allowance for Doubtful Accounts	Answer
		Answer

Accepted Answer

In This Numerical Has Covered The Concept of Accounts Receivable.