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Assignment #9 At March 1, 2020, Clearwater Constructions Ltd. reported the following accounts: Accounts receivable Allowance for Doubtful Accounts (AFDA) $1,856,000 $92,000 Clearwater Construction Ltd.'s
Assignment #9 At March 1, 2020, Clearwater Constructions Ltd. reported the following accounts: Accounts receivable Allowance for Doubtful Accounts (AFDA) $1,856,000 $92,000 Clearwater Construction Ltd.'s business year ends on March 31. During the month of March, the company had the following summary transactions (T) for receivables: T1. Sales on account $4,650,000. The sold goods cost the company $2,970,000. T2. Sales returns and allowances $95,000. The cost of goods returned to inventory, $61,500. T3. Collections of accounts receivable, $3,700,000. T4. Interest added to overdue accounts, $85,500. T5. Write offs of accounts receivable deemed uncollectible, $102,600. T6. Collection of accounts previously written off as uncollectible, $33,200. T7. After considering all the above transactions, the total estimated uncollectible accounts (i.e. doubtful accounts) are $104,000. Questions (fill in your answers in the appropriate Blank #1 to #4 fields below): #1) Which account did you credit for $2,970,000 in T1? #2) What amount did you debit to Bad Debt Expense in T7? #3) What is the ending balance on the AFDA account on March 31? #4) What is the carrying amount of the Accounts Receivable account on March 31
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