Accounting for managers MBA courses

11/21/2020 Exercise 6-8

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Print by: SHADI SHADMAN Acct 621 Fall 2020 S21 / Assignment 1 for Acct621 Fall 2020

*Exercise 6-8 At the beginning of the current period, Splish Brothers Inc. had balances in Accounts Receivable of $202,700 and in Allowance for Doubtful Accounts of $9,200. During the period, it had net credit sales of $744,100 and collections of $829,950. It wrote off as uncollectible accounts receivable of $7,798. Uncollectible accounts are estimated to total $26,820 at the end of the period. (Omit recording cost of goods sold.)

Enter the beginning balances for Accounts Receivable and Allowance for Doubtful Accounts in a tabular summary. Use the summary to record transactions (a and (c) below. (a) Record sales and collections during the period. (b) Record the write-off of uncollectible accounts during the period. (c) Record bad debt expense for the period.

(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Assets = Liabilities + Stockholders' Equity

Allow. For Retained Earnings

Cash + Accts. Rec. - Doubtful Accts

= + Common Stock

+ Rev. - Exp.

Beg. Bal. $ $ $ $ $ $

(a)

(b)

(c)

Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Ending balance in Accounts Receivable $ .

Ending balance in Allowance for Doubtful Accounts $ .

What is the net realizable value of the receivables at the end of the period?

The net realizable value of the receivables at the end of the period $

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