Accrual Accounting Prudence Corp.'s Records Provide the Following Information Concerning Certain Account

Essay

Accrual accounting
Prudence Corp.'s records provide the following information concerning certain account balances and changes in these account balances during the current year. Transaction information is missing from each item below.
Instructions
Prepare the entry to record the missing information for each account. (Consider each independently.)
1. Accounts Receivable: Jan 1, balance $ 30,000, Dec 31, balance $ 37,000, uncollectible accounts written off during the year, $ 4,000; accounts receivable collected during the year, $ 134,000. Prepare the entry to record sales for the year.
2. Allowance for Doubtful Accounts: Jan 1, balance $ 3,800, Dec 31 balance $ 7,700, uncollectible accounts written off during the year, $ 28,000. Prepare the entry to record bad debt expense.
3. Accounts Payable: Jan 1, balance $ 20,000, Dec 31, balance $ 33,000, purchases on account for the year, $ 110,000. Prepare the entry to record payments on account.
4. Interest Receivable: Jan 1 accrued, $ 3,000, Dec 31 accrued, $ 3,500, earned for the year, $ 14,000. Prepare the entry to record cash interest received.