Assume the following information for Kingbird Corp. Accounts receivable (beginning balance) $139,000 Allowance for doubtful accounts (beginning balance) 11,370 Net credit sales 944,000 Collections 908,000 Write-offs of accounts receivable 5,300 Collections of accounts previously written off 1,800

Prepare journal entries of sales, collections, write offs of accounts receivable, and reverse entries:

Date Account details and explanations Debit Credit

Accounts receivable 944,000

sales revenue 944,000

Allowance for doubtful accounts 5300

Accounts receivable 5300

Accounts receivable 1800

Allowance for doubtful accounts 1800

cash 1800

Accounts receivable 1800

Calculating the ending balance of accounts receivable and unadjusted ending balance of allowance for doubtful accounts:

particulars Amount ($)

beginning balance of accounts receivable 139,000

Add: Net credit sales 944,000

less : Collections 908,000

Write-offs 5,300

Add: Reinstated amount 1800

less: Collections 1800

Ending balance of accounts receivable 169700

particulars Amount ($)

beginning balance of doubtful accounts 11,370

less : Write-offs 5300

Add: Reinstated amount 1800

Ending balance of unadjusted balance 7870

allowance of doubtful accounts

Preparing journal entry to record bad debt

Date Account details and explanations Debit Credit

Bad debt expense (169700*8%) - 7870 12789

allowance of doubtful accounts 12789