Problem 5-3

1
Cash 800,000
Accounts Receivable 7,200,00
Sales 8,000,000
2 Cash 684,000
Sales discount 36,000
Accounts receivable 720,000
3 Cash 5,940,000
Accounts Receivable 5,940,000
4 Sales discount 10,000
Allowance for sales discount 10,000
5 Sales returns 80,000
 Accounts receivable 80,000
6 Allowance for DA 60,000
Accounts receivable 60,000

Accounts Receivable 10,000

Allowance for DA 10,000

Cash 10,000
Accounts Receivable 10,000
7 Doubtful accounts expense 70,000
Allowabce for DA 70,000

Allowance for DA, beggining 100,000

Recovery of write-off 10,000
Doubtful accounts expenses 70,000
Write-off -60,000
Allowance for DA, end 120,000

Accounts receivable 2,400,000

Allowance for Doubtful accou -120,000
Allowance for SD -10,000
Net Realizable Value 2,270,000