uality Watches completed the following selected transactions during 2016 and 2017: (Click the icon to view the transactions.) Requirements 1. 2. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you. Record the transactions in the general journal. Post to the two T-accounts and keep running balances, assuming all accounts begin with a zero balance. Assume the December 31, 2017, balance of Accounts Receivable is $139,000. Show how net accounts receivable would be reported on the balance sheet at that date. Requirement 1. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you. Record the transactions in the general journal. Post to the two T-accounts and keep running balances, assuming all accounts begin with a zero balance. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Abbreviations used: Adj. = Adjusting entry, Clos. = Closing entry, W/O = Write-off.) Begin by recording the 2016 transactions. Dec. 31: Estimated that bad debts expense for the year was 1% of credit sales of $440,000 and recorded that amount as expense. The company uses the allowance method. Date 2016 Dec. 31 (Adj.) Accounts and Explanation Dec. 31: Made the closing entry for bad debts expense. Date 2016 Accounts and Explanation Dec. 31 (Clos.) Debit Credit Debit Credit Post to the two T-accounts and keep running balances, assuming all accounts begin with a zero balance. (Post the December 31 entry on the first line of the account and calculate the December 31 balance on the second line of the account. Then post the closing entry on the third line of the account and calculate the January 1, 2017 balance on the last line of the account. Enter "0" on the normal side of the account for any zero balances.) Allowance for Bad Debts Bad Debts Expense 0 Jan. 1 2016 Bal. Jan. 1 2016 Bal. 0 Now record the 2017 transactions in the journal. Jan. 17: Sold inventory to Marty White, $700, on account. Ignore Cost of Goods Sold. Date 2017 Jan. 17 Accounts and Explanation Debit Credit Jun. 29: Wrote off Marty White's account as uncollectible after repeated efforts to collect from him. Now record the $700 received from Marty White. Date 2017 Aug. 6 Accounts and Explanation Debit Credit Dec. 31: Made a compound entry to write off the following accounts as uncollectible: Bernard Klaus, $1,700; May Milford, $1,600; and Rich Alton, $400. Accounts and Explanation Credit Date Debit 2017 Dec. 31 (W/O) Dec. 31: Estimated that bad debts expense for the year was 1% on credit sales of $470,000 and recorded the expense. Date Accounts and Explanation Debit Credit Dec. 31: Estimated that bad debts expense for the year was 1% on credit sales of $470,000 and recorded the expense. Date 2017 Dec. 31 (Adj.) Accounts and Explanation Dec. 31: Made the closing entry for bad debts expense. Date 2017 Dec. 31 (Clos.) Accounts and Explanation Debit Credit Debit Credit Now enter the January 1, 2017 beginning balances, post the journal entries to the T-accounts, and calculate the a running balance after each transaction date. (Enter the beginning balance on the first line of the each account. Then enter the transactions in the order they are presented in the journal entries. Calculate the December 31, 2017 balance before posting the closing entry on the 8th line of the account. Enter "0" on the normal side of the account for any zero balances.) 0047: Now enter the January 1, 2017 beginning balances, post the journal entries to the T-accounts, and calculate the a running balance after each transaction date. (Enter the beginning balance on the first line of the each account. Then enter the transactions in the order they are presented in the journal entries. Calculate the December 31, 2017 balance before posting the closing entry on the 8th line of the account. Enter "0" on the normal side of the account for any zero balances.) View the 2017 journal entries. Allowance for Bad Debts Jun. 29 2017 Bal. Jun. 29 2017 Bal. Aug. 6 2017 Bal. Aug. 6 2017 Bal. Dec. 31 2017 Bal. Dec. 31 2017 Bal. Jan. 1 2018 Bal. Jan. 1 2018 Bal. Bad Debts Expense Requirement 2. Assume the December 31, 2017, balance of Accounts Receivable is $139,000. Show how net accounts receivable would be reported on the balance sheet at that date. Balance Sheet (Partial): Current Assets: Quality Watches completed the following selected transactions during 2016 and 2017: (Click the icon to view the transactions.) Requirements 1. 2. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you. Record the transactions in the general journal. Post to the two T-accounts and keep running balances, assuming all accounts begin with a zero balance. Assume the December 31, 2017, balance of Accounts Receivable is $139,000 More info Now enter the January 1, 2017 beginning balances, post the journal entries to the T-ac in the journal entries. Calculate the December 31, 2017 balance before posting the clo View the 2017 journal entries. 2016 e of the each account. Then enter the transactions in the order they are presente Dec. 31 Estimated that bad debts expense for the year was 1% of credit sales of $440,000 a allowance method. 31 Made the closing entry for bad debts expense. Allowance for Bad Debts Bad Jun. 29 2017 Bal. Jun. 29 2017 Bal. Aug. 6 2017 Bal. Aug. 6 2017 Bal. Dec. 31 2017 Bal. Dec. 31 2017 Bal. Jan. 1 2018 Bal. Jan. 1 2018 Bal. Requirement 2. Assume the December 31, 2017, balance of Accounts Receivable is Balance Sheet (Partial): Current Assets: 2017 Jan. 17 Jun. 29 Aug. 6 Dec. 31 31 31 Sold merchandise inventory to Marty White, $700, on account. Ignore Cost of Good: Wrote off Marty White's account as uncollectible after repeated efforts to collect from Received $700 from Marty White, along with a letter apologizing for being so late. R Made a compound entry to write off the following accounts as uncollectible: Bernard Estimated that bad debts expense for the year was 1% on credit sales of $470,000 Made the closing entry for bad debts expense. Print Done Jun. 29: Wrote off Marty White's account as uncollectible after repeated efforts to collect from him. Date 2017 Jun. 29 Accounts and Explanation Debit Credit 1111 Aug. 6: Received $700 from Marty White, along with a letter apologizing for being so late. Reinstated White's account in full and recorded the cash receipt. Start by recording the entry to reinstate White's account. Date 2017 Aug. 6 Accounts and Explanation Now record the $700 received from Marty White. Debit Credit Accounts and Evolanation Dahis Gradie