Question
At December 31, 2013, Dustin Company reported this information on its balance sheet. Accounts Receivable: $960000 Less: Allowance for doubtful accounts: $78000 During 2014, the
At December 31, 2013, Dustin Company reported this information on its balance sheet.
Accounts Receivable: $960000
Less: Allowance for doubtful accounts: $78000
During 2014, the company had the following transactions related to receivables.
1. Sales on account: $3600000
2. Sales returns and allowances: $150000
3. Collections of accounts receivable: $3100000
4. Write-offs of accounts receivable deemed uncollectible: $92000
5. Recovery of bad debts previously written off as uncollectible: $28000
Question: Enter the Jan. 1, 2014 balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to two accounts (use T-accounts), and determine the balances.
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