Exercise 2

Accounts Receivable

The notes and tables below provide information about the Accounts Receivable for C&S, Inc.

Accounts Receivable, net consists of the following:

Year ended Dec 31	2016	2015
Accounts Receivable	104,520	86,904
Less: Allowance for doubtful accounts	(7,946)	(7,360)
Accounts Receivables, net	96,574	79,544

Assume that C&S had total credit sales (before allowances) of $1,400,000 in 2016. At the beginning of 2016, C&S accountants estimate that a total of 1% of credit sales will be uncollectible.

In the questions below, be sure to label each account as Asset (A), Contra-Asset (CA), Liability (L), or Equity (E).

(a) Use the BSE to record credit sales and the allowance for doubtful accounts for C&S for 2016

(b) Use the BSE to record the C&S write off of accounts receivables for 2016