At the beginning of the current period, griffey corp. had balances in accounts receivable of $200,000 and in allowance for doubtful accounts of $9,000 (credit). during the period, it had net credit sales of $800,000 and collections of $763,000. it wrote off as uncollectible accounts receivable of $7,300. however, a $3,100 account previously written off as uncollectible was recovered before the end of the current period. uncollectible accounts are estimated to total $25,000 at the end of the period. (credit account titles are automatically indented when amount is entered. do not indent manually.) (a) prepare the entries to record sales and collections during the period. (b) prepare the entry to record the write-off of uncollectible accounts during the period. (c) prepare the entries to record the recovery of the uncollectible account during the period. (d) prepare the entry to record bad debt expense for the period.

The Journal entries to record sales, collections, write-off, recovered account, and Bad Debts Expense, in the books of Griffey Corp., for the period are as follows:

a) Debit Accounts Receivable $800,000

Credit Sales Revenue $800,000

To record credit sales.

Debit Cash $763,000

Credit Accounts Receivable $763,000

To record cash collections.

b) Debit Allowance for Uncollectible Accounts $7,300

Credit Accounts Receivable $7,300

To record accounts written off.

c) Debit Accounts Receivable $3,100

Credit Allowance for Uncollectible Accounts $3,100

To reverse an account recovered.

Debit Cash $3,100

Credit Accounts Receivable $3,100

To record cash collection on recovered account.

d) Debit Bad Debts Expenses $20,200

Credit Allowance for Uncollectible Accounts $20,200

To record bad debts expense.

Data Analysis:

Beginning balances:

Accounts Receivable = $200,000

Allowance for Uncollectible Accounts = $9,000 (credit)

Net credit sales = $800,000

Cash collections = $763,000

Uncollectibles written off = $7,300

Recovered account = $3,100

Uncollectible accounts ending balance = $25,000

Accounts Receivable

Account Titles                     Debit        Credit

Beginning balance         $200,000

Credit sales                       800,000

Cash                                                 $763,000

Allowance for Uncollectible                  7,300

Allowance for Uncollectible 3,100

Cash                                                       3,100

Allowance for Uncollectible Accounts

Account Titles                      Debit       Credit

Beginning balance                            $9,000

Accounts Receivable        $7,300

Accounts Receivable                           3,100

Bad Debts Expense                      $20,200

Ending balance             $25,000

Totals                             $32,300  $32,300

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