Answered

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At the beginning of the current period, Shamrock Corp. had balances in Accounts Receivable of $187,800 and in Allowance for Doubtful Accounts of $9,630 (credit). During the period, it had net credit sales of $860,400 and collections of $687,720. It wrote off as uncollectible accounts receivable of $7,381. However, a $2,859 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $23,070 at the end of the period.

Required:
a. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.
b. What is the net realizable value of the receivables at the end of the period?

Sagot :

ayokenny2001

Answer:

See below

Explanation:

The net realizable values are as follows

ai For accounts receivables

Ending balance of account receivables = Beginning balance of account receivables + Credit sale - Collections uncollectible amount

= $187,800 + $860,400 - $687,720

= $360,480

aii For allowance for doubtful debt

= Beginning balance + Previously written off amount - Uncollectible amount + Bad debt expense

= $9,630 + $2,859 - $7,381 + $18,412

= $23,070

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