Bright Smile Dental Group started 2016 with Accounts receiva

Bright Smile Dental Group started 2016 with Accounts receivable of $134,000 and a credit balance in Allowance for uncollectible accounts of $9,000. The following information relates to Bright Smile Dental\'s 2016 operations: Journalize Bright Smile\'s 2016 transactions based on the information provided. Prepare a T-account for the Allowance for uncollectible accounts to show your computation of Bad debt expense for the year. Journalize Bright Smile\'s 2016 transactions. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Credit sales, $322,000 i More Info Journal Entry Accounts Debit Credit a. Credit sales, $322,000. b. Collections on account $309,000 c. Write-offs of uncollectibles, $12,400. d. At 31, the aging of accounts receivable showed that Bright Smile will probably not collect $7,300 of its accounts receivable.

Solution

Debit Credit Accounts Receivable $       322,000.00 To Sales $     322,000.00 Bank A/c Dr $       309,000.00 To Accounts Receivable $     309,000.00 Allowance for Uncollectible Amount $         12,400.00 To Accounts Receivable $        12,400.00 Bad debt Expense $            7,300.00 To Allowance for Uncollectible Amount $          7,300.00 EXTRACT OF BALANCE SHEET Accounts Receivables [Refer Note 1] $     138,000.00 Less:Allowance for Uncollectible Amount [Note 2] $        (7,300.00) $     130,700.00 Note 1 Accounts receivable Opening Balance $       134,000.00 Add: Sales $       322,000.00 Less: Bank $     (309,000.00) Less: Allowance for Doubtful Debt $         (9,000.00) $       138,000.00 Note 2 Allowance for Uncollectible Amount Opening Balance $            9,000.00 Add: current year provision $            7,300.00 Less: Debtor writen off $       (12,400.00) Less: Debtor RECOVERED $            3,400.00 $            7,300.00