Problem 6-6 At December 31, 2016, Swifty Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $560,400 37,640 During 2017, the company had the following transactions related to receivables. 1. 2. 3. 4. Sales on account Sales returns and allowances Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible $2,968,300 64,500 2,518,800 43,310 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. SHOW LIST OF ACCOUNTS LINK TO TEXT 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).) ASSE Assets = Liabilities + Allow. For Accts. Rec. - Doubtful Accts. = + Common Stock + Stockholders' Equity Retained Earnings Cash + Rev. Exp. Beg. Bal. $ 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 + Allow. For + Accts. Rec. - Doubtful Accts. = + Common Stock + Stockholders' Equity Retained Earnings - Exp. Cash Rev. Beg. Bal. SHOW LIST OF ACCOUNTS LINK TO TEXT Record bad debt expense for 2017, assuming that aging the accounts receivable indicates that estimated bad debts are $87,110. (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. = + Common Stock + Stockholders' Equity Retained Earnings Rev. Exp. Cash (c) SHOW LIST OF ACCOUNTS LINK TO TEXT Indicate how accounts receivable and the allowance for doubtful accounts will be reported on the December 31, 2017, balance sheet. Record bad debt expense for 2017, assuming that aging the accounts receivable indicates that estimated bad debts are $87,110. (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. = + Common Stock + Stockholders' Equity Retained Earnings Rev. - Exp. Cash (c) SHOW LIST OF ACCOUNTS LINK TO TEXT Indicate how accounts receivable and the allowance for doubtful accounts will be reported on the December 31, 2017, balance sheet. SWIFTY IMPORTS Balance Sheet Assets
