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At March 1, 2020, Clearwater Constructions Ltd. reported the following accounts: Accounts receivable $1,856,000 Allowance for Doubtful Accounts (AFDA) $92,000 Clearwater Construction Ltd.'s business year
At March 1, 2020, Clearwater Constructions Ltd. reported the following accounts: Accounts receivable $1,856,000 Allowance for Doubtful Accounts (AFDA) $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. TS. 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 #14 fields below): #1) Which account did you credit for $2,970,000 in T1? M2) What amount did you debit to Bad Debt Expense in T7? M3) 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? Additional information: Read the assignment question carefully. Answer the question on paper before you enter your responses. Upload all your workings in the dropbox folder as usual (one file for all your workings). You will only receive full marks on the assignment if you upload your workings. Please use exact numbers for your calculations, and only round the final result to the nearest whole number (if necessary). Fill the answers 1-4 in the correct order in the boxes below. Don't use currencies, commas or thousands separators. Example: Write 59300 for $59,300.00
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