At the beginning of the current period, Azim Enterprises Ltd. had balances in Accounts Receivable of $1,600,000 and in Allowance for Doubtful Accounts of $88,000. During the period, Azim had net credit sales of $3,800,000 and collections of $4,084,000. It wrote off accounts receivable of $116,000. However, an $8,000 account written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $72,000 at the end of the period. Instructions
| (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 debts expense for the period. |
| (e) |
Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. |
| (f) |
Show the statement of financial position presentation of the receivables at the end of the period.
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