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. Part 1 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 enter an account title to record sales on account enter a debit amount enter a credit amount enter an account title to record sales on account enter a debit amount enter a credit amount (To record sales on account) enter an account title to record collection of accounts receivable enter a debit amount enter a credit amount enter an account title to record collection of accounts receivable enter a debit amount enter a credit amount (To record collection of accounts receivable)
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. Part 1 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 enter an account title to record sales on account enter a debit amount enter a credit amount enter an account title to record sales on account enter a debit amount enter a credit amount (To record sales on account) enter an account title to record collection of accounts receivable enter a debit amount enter a credit amount enter an account title to record collection of accounts receivable enter a debit amount enter a credit amount (To record collection of accounts receivable)
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.1KTQ
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Question
Assume the following information for Teal Mountain Corp.
Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable.
| 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.
Part 1
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
|
|---|---|---|
|
enter an account title to record sales on account
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record sales on account
|
enter a debit amount
|
enter a credit amount
|
| (To record sales on account) | ||
|
enter an account title to record collection of accounts receivable
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record collection of accounts receivable
|
enter a debit amount
|
enter a credit amount
|
| (To record collection of accounts receivable) |
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