At December 31, 2017, Marx Imports Inc reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $595,000 41,000 1. During 2018, the company had the following summary transactions related to receivables and sales. Marx uses the perpetual inventory system Sales on account amounted to $2,414,000. The cost of the inventory sold was $1,979,480. Sales returns and allowances with a total sales price of $41,000 and a cost of $33,620 were restored to inventory. Collections of accounts receivable were $2,091,000. Write-offs of accounts receivable deemed uncollectible $46,500. Recovery of bad debts previously written off as uncollectible, $15,500. 2. 3. 4. 5. (b) Enter the January 1, 2018, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances before any year-end adjustments. (Post entries in the order of journal entries presented in the previous question.) Accounts Receivable