Problem 8-1A (Part Level Submission) At December 31, 2016, House Co. reported th
ID: 2406078 • Letter: P
Question
Problem 8-1A (Part Level Submission) At December 31, 2016, House Co. reported the following information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts 950,500 79,700 During 2017, the company had the following transactions related to receivables 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible $3,740,100 51,600 2,817,000 92,000 28,500Explanation / Answer
Posting the entries in T-accounts and determine the balance Accounts Receivables To balance b/d $950,500.00 By Sales Returns and Allowances $51,600.00 To Sales Revenue $3,740,100.00 By Cash $2,817,000.00 To Allowance for Doubtful accounts $28,500.00 By Allowance for Doubtful accounts $92,000.00 By Cash $28,500.00 By balance c/f $1,730,000.00 Total $4,719,100.00 Total $4,719,100.00 Allowance for Doubtful accounts To Accounts Receivables $92,000.00 By balance b/d $79,700.00 By Accounts Receivables $28,500.00 To balance c/f $16,200.00 Total $108,200.00 Total $108,200.00 Accounts Receivables balance as on 31/12/2017 (debit) $1,730,000.00 Allowance for Doubful Accounts balance as on 31/12/2017 (credit) $16,200.00