Date Dec 31/16 Balance Accounts Receivable Debit Credit Allowance for Doubtful Accounts Debit Date Dec 31/16 Balance 450,000 During the year 2017, the following selected transactions occurred: Sales totalled $1,700,000, of which 85% were credit sales (cost of sales $925,000). Sales returns were $25,000, all regarding credit sales. The returned merchandise was scrapped. An account for $30,000 was recovered. Several accounts were written off, including one very large account; the total was 20,500. Collected accounts receivable of $1,150,000 (excluding the recover in c) above). Credit 11,500 Required: Note that Part B is independent of Part C. Part A will be the same for both. Part A Journalize transactions (a) through (e). You might find it useful to post your entries to Taccounts for Accounts Receivable and Allowance for Doubtful Accounts Part B 2 Prepare the December 31, 2017, adjusting entry to estimate bad debts assuming the uncollectible accounts are estimated to be 1.5% of net credit sales. 3 Show how accounts receivable will appear on the December 31, 2017, balance sheet 4 Pat C Prepare the December 31, 2017, adjusting entry to estimate bad debts assuming the uncollectible accounts are estimated to be 4% of outstanding accounts receivable. 5 Show how accounts receivable will appear on the December 31, 2017, balance sheet Answers 1 Date Part B 2 3 Presentation on the balance sheet Part C 4 Presentation on the balance sheet Account/Description Debit Credit