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Problem 6-6 At December 31, 2016, Pronghorn Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $655,700 35,770 During 2017, the company had the following transactions related to receivables. 1. 2. Sales on account Sales returns and allowances Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible $2,973,300 50,800 2,622,800 44,090 4. Your answer is correct. Prepare a tabular summary that includes the following accounts: Cash, Accounts Receivable, Allowance for Doubtful Accounts, Revenue, and Expense. Enter the January 1, 2017, balances in Accounts Receivable and Allowance for Doubtful Accounts. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45. Assets = Liabilities + Stockholders' Equity Allow. For Retained Earnings - Doubtful Accts. = + Common Stock + Rev. - Exp. Cash + Accts. Rec. Beg. Bal. Beg. Bal. 2 55700 $ 6 55700 -35770 Record transactions 1 through 4. (Omit recording cost of goods sold.) (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Assets = Liabilities + Stockholders' Equity Retained Earnings Allow. For Retained Earnings Kola Cash Accts. Rec. - Doubtful Accts. = + Common Stock + Rev. Exp. Beg. Bal. 655700 J -35770 2973300 2973300 Sales revenue Sales revenue a -50800 -50800 Sales returns & allowances X. 12,622,800 -44,090 Record bad debt expense for 2017, assuming that aging the accounts receivable indicates that estimated bad debts are $81,050. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Assets = Liabilities + Allow. For + Accts. Rec. - Doubtful Accts. = Stockholders' Equity Retained Earnings Exp. Cash + Common Stock + Rev. O 81050 O 81050 51050) 7 ad cet expense Bad debt expense 3