Reference no: EM132495059

Point 1: At the beginning of the current period, Newman Corporation had balances in Accounts Receivable of $201,100 and in Allowance for Doubtful Accounts of $9,900 (credit). During the period, Newman had credit sales of $805,800 and collections on account of $769,300.

Point 2: Newman uses a perpetual inventory system and determined that the cost of goods sold during the period was $669,500. Newman wrote off as uncollectible accounts receivable of $7,500. However, a $2,800 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,400 at the end of the period.

Question 1: The entry to record collections (not including recovery) of accounts receivable during the period is:

Option a: Accounts Receivable

669,500

Cash

669,500

Option b: Accounts Receivable

201,100

Cash

201,100

Option c: Cash

805,800

Accounts Receivable

805,800

Option d: Cash

769,300

Accounts Receivable

769,300