L$01,2$ P$6-7.$ Accounts Receivable and Credit Losses At the beginning of the year, the Houston Company had

the following accounts on its books:

Accounts receivable $.................................................$ $$244,000$

During the year, credit sales were $$2,346,000$ and collections on account were $$2,300,000.$ The

following transactions, among others, occurred during the year:

Feb. $17$ Wrote off R$.$ St$.$ John's account, $$7,200.$

May $28$ Wrote off G$.$ Herberger's account, $$4,800.$

Oct. $13$ Received $$1,200$ from G$.$ Herberger, who is in bankruptcy proceedings, in final

settlement of the account written off on May $28.$ This amount is not included in the

$$2,300,000$ collections.

Dec. $15$ Wrote off R$.$ Clancy's account, $$3,000.$

$31$ Adjusted the allowance for doubtful accounts to $0\mathrm{.}8$ percent of credit sales for the year.

REQUIRED

a$.$ What is the amount of Bad Debt Expense for the year?

b$.$ Determine the balance in Accounts Receivable and the Allowance for Doubtful Accounts.

c$.$ Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on

the December $31$ balance sheet.