At the beginning of July, CD City has a balance in inventory of $2,800. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,700, ter

(a) The entry to record credit sales would be: Accounts Receivable $800,000 Sales $800,000 The entry to record collections would be: Cash $763,000 Accounts Receivable $763,000 (b) The entry to record the write-off of uncollectible accounts would be: Allowance for Doubtful Accounts $7,000 Accounts Receivable $7,000 (c) The entry to record the recovery of the uncollectible account would be: Accounts Receivable $3,000 Allowance for Doubtful Accounts $3,000 (d) The entry to record bad debts expense for the period would be: Bad Debts Expense $23,000 Allowance for Doubtful Accounts $23,000 ($25,000 estimated uncollectible accounts - $7,000 write-off) (e) The ending balances in Accounts Receivable and Allowance for Doubtful Accounts would be: Accounts Receivable $194,000 Allowance for Doubtful Accounts $25,000 (credit) (f) The net realizable value of the receivables at the end of the period would be: $194,000 (ending Accounts Receivable) - $25,000 (ending Allowance for Doubtful Accounts) = $169,000.