Accounting Questions?

Question

At the beginning of the current period, Fassi Corp. had balances in Accounts Receivable of $400,000 and in Allowance for Doubtful Accounts of $22,000 (credit). During the period, it had net credit sales of $910,000 and collections of $941,000. It wrote off accounts receivable of $24,000. However, a $5,000 account written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $20,000 at the end of the period.

Can your calculate the ending balances in Accounts Receivable and Allowance for Doubtful Accounts
Thanks

Answer 1

Oops, I've a different answer from Answerer 1
Accounts Receivable Account:
Beginning bal 400,000
Credit sales 910,000
Collections (941,000)
Written off (22,000) using allowance a/c to the max
Written off (2,000) balance of 24k, taken to P/L
Ending bal. 345,000

Allowance for Doubtful Accounts:
Beginning bal 22,000
Written off against AR (22,000)
Fresh allowance made 20,000 corresp entry to P/L
Ending bal 20,000

Note : 5,000 recovered does not affect AR or allowance accounts. It is taken to income statement as bad debt recovered or doubtful debt allowance no longer required. The corresponding entry is to cash received.

The net effect on income statement by whatever account names called is:
Under-allowance of 2,000
Fresh allowance of 20,000
Debt recovered (5,000)
Net effect 17,000 expense

Answer 2

Accts Receivable:
Starting Balance $400,000
Credit Sales 910,000
Collections (941,000)
Write offs (24,000)
Recovered 5,000
Ending Balance $350,000 Debit

Allowance $20,000 Credit