Question

At December 31, 2016, House Co. reported the following information on its balance sheet.

Accounts receivable		$950,100
Less: Allowance for doubtful accounts		78,300

During 2017, the company had the following transactions related to receivables.

1.		Sales on account		$3,729,700
2.		Sales returns and allowances		50,300
3.		Collections of accounts receivable		2,811,600
4.		Write-offs of accounts receivable deemed uncollectible		88,100
5.		Recovery of bad debts previously written off as uncollectible (b) Enter the January 1, 2017, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T-accounts), and determine the balances. (Post entries in the order of journal entries presented in the previous part.) just part B please /		28,600

Answer 1

JURNAL ENTRIES
1	Accounts receivable Dr.				3,729,700
	Sales revenue					3,729,700
2	Sales return and allowance Dr.				50300
	Accounts Receivable					50300
3	Cash Account Dr.				2,811,600
	Accounts recievable					2,811,600
4	Allowance for doubtfult accounts Dr.				88100
	Accounts receivable					88100
5	Accounts receivable Dr.				28600
	Allowance for doubtfult accounts					28600
	(for reinstated the earlier bad debts)
	Cash Account Dr.				28600
	Accounts receivable					28600
ACCOUNTS RECEIVABLE
Balance		950,100	Sales return and alowance		50,300
Sales revenue		3,729,700	Cash		2,811,600
Alowance for doubtful debt		28,600	Allowance for Doubtful debt		88,100
			Cash		28,600
Balance		1,729,800
ALLOWANCE FOR DOUBTFUL DEBTS
Accounts receivable		88,100	Balance		78,300
			Accounts receivable		28,600
			balance		18800
Balances in Accounts rececivable:				1729800
Balance in Allowance in doubtful accounts:				18800