Accounts Receivable iii Allowance for doubtful $5,500 debts Accounts Receivable $340,000 $5,500 iv Bad debt expense $6,400 Allowance for doubtful $6,400 debts ($320,000 x 0.02 = $6,400) Assume ABC company has the opening balance (1/7/2016) of Allowance for doubtful debts as $1,000, then the ending balance (30/6/2017) of Allowance for doubtful debts as $5,500 - $1,000 +$6,400 = $10,900. The Net Accounts Receivable at 30/6/2017 is therefore $320,000 - $10,900 = $309,100. Now, let's try the above question with different values as follows: During 2017, ABC Company completed the following transactions pertaining to allowance method to account for bad debts: i. ii. iii. iv. V. Sales revenue on credit, $346607 Collections on account, $220466 Write-offs of uncollectable, $13867 Bad debt expense, 3% of sales revenue The opening balance of Allowance for doubtful debts is $13065 Work out the journals to record the above transactions and calculate the Net Accounts Receivable as at 30/6/2017 in the answer block below.