Question

At the beginning of the current. Blossom company had balances in account receivable of $191,500 and in allowances for doubtful accounts of $ 9890 (credit). During the period, it had net credit sales of $733,600 and collections of $767,780. It Road off as uncollectible accounts receivable of $7149. However, a $2957 account previously written off as Uncollectible was received before the end

of the current period. Uncollectible accounts are estimated to total $25,440 at the end of the period. Omit cost of good sold entries

Answer 1

Journal entries:
S.no.	Accounts title and explanations				Debit $	Credit $
a.	Accounts receivable Dr.				733600
	Sales revenue					733600
b.	Cash account Dr.				767780
	Accounts receivable					767780
c.	Allowance for doubtful accounts Dr.				7149
	Accounts receivable					7149
d.	Accounts receivable Dr.				2957
	Allowance for doubtful accounts					2957
	Cash account Dr.				2957
	Accounts receivable					2957
e.	Bad debts expenses Dr.				19742
	Allowance for doubtful accounts					19742
Note:
Allowance beginning balance				9890
Add: Amount reinstatted				2957
Less: Amount written off				-7149
Actual balance of Allowance				5698
Required balance of Allowancce				25440
bad debts expense				19742