At the beginning of the current period, Larkspur Corp. had balances in Accounts Receivable of $202,700 and in Allowance for Doubtful Accounts of $9,200 (credit). During the period, it had net credit sales of $744,100 and collections of $829,950. It wrote off as uncollectible accounts receivable of $7,798. However, a $2,979 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,820 at the end of the period. (Omit cost of goods sold entries.)

(a) Prepare the entries to record sales and collections during the period.
(b) Prepare the entry to record the write-off of uncollectible accounts during the period.
(c) Prepare the entries to record the recovery of the uncollectible account during the period.

The journal entries are as follows:

(i) (a) Accounts receivable A/c Dr. $744,100

               To Sales A/c                                    $744,100

(To record the sales on account)

   (b) Cash A/c Dr. $829,950

      To accounts receivables    $829,950

(To record the cash collections for credit sales)

(ii) Allowance for doubtful accounts A/c Dr. $7,798

              To Accounts receivables                            $7,798

(To record the write-off of uncollectible accounts during the period)

(iii) Accounts receivables A/c Dr. $2,979

                 To Allowance for doubtful accounts   $2,979

(To record the recovery of the uncollectible account during the period)

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

answer; interviews;