At December 31, 2021, Wildhorse Imports reported this information on its balance sheet. Accounts receivable $563,000 Less: Allowance for doubtful accounts 39,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account $2,470,000 2. Sales returns and allowances 52,000 3. Collections of accounts receivable 2,170,000 4. Write-offs of accounts receivable deemed uncollectible 45,000 5. Recovery of bad debts previously written off as uncollectible 15,000

Debit Credit No. Account Titles and Explanation 1. Accounts Receivable 2470000 Sales Revenue 2470000 2. Sales Returns and Allowances 52000 Accounts Receivable 52000 3. Cash 2170000 Accounts Receivable 2170000 4. Allowance for Doubtful Accounts 45000 Accounts Receivable 45000 5. Accounts Receivable 15000 15000 Allowance for Doubtful Accounts (To reinstate account previously written off) Cash 15000 Accounts Receivable 15000 (To record collection of accounts receivable) Enter the January 1, 2022, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances. (Post entries in the order of journal entries posted in the previous part) Accounts Receivable (1) > 2470000 (2) 52000 (5) > 15000 (3) 2170000 45000 (5) 15000