Receivable - Bad debt allowance

During 2017, ABC Company completed the following transactions pertaining to allowance method to account for bad debts:

i. Sales revenue on credit, $320,000

ii. Collections on account, $340,000

iii. Write-offs of uncollectable, $5,500

iv. Bad debt expense, 2% of sales revenue

The journals to record the above transactions are shown below:

		Debit	Credit
i	Accounts Receivable	$320,000
	Sales revenue		$320,000
ii	Cash	$40,000
	Accounts Receivable		$40,000
iii	Allowance for doubtful debts	$5,500
	Accounts Receivable		$5,500
iv	Bad debt expense	$6,400
	Allowance for doubtful debts		$6.400
	(320,000*2% = $6,400)

Assume ABC company has the opening balance (1/7/2016) of Allowance for doubtful debts as $1,000, then the ending balance (30/6/2017) of Allowance for doubtful debts is $6,400 + $1,000 - $5,500 = $1,900. The Net Accounts Receivable at 30/6/2017 is therefore ($320,000 - $40,000 - $5,500) - $1,900 = $272,600. Now, let's try the above question with different values as follows:

During 2017, ABC Company completed the following transactions pertaining to allowance method to account for bad debts:

i. Sales revenue on credit, $337625

ii. Collections on account, $164083

iii. Write-offs of uncollectable, $21627

iv. Bad debt expense, 7% of sales revenue

v. The opening balance of Allowance for doubtful debts is $14428

Work out the journals to record the above transactions and calculate the Net Accounts Receivable as at 30/6/2017 in the answer block below.