Question

CALCULATOR PRINTER VERSION BACK NEXT Question 8 At December 31, 2016, Blue Spruce Imports reported this information on its balance sheet. Accounts receivable $627,200 Less: Allowance for doubtful accounts 37,300 During 2017, the company had the following transactions related to receivables 1. Sales on account $2,936,400 2. Sales returns and allowances 80,000 3. Collections of accounts receivable 2,528,500 4. Write-offs of accounts receivable deemed uncollectible 41,620 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 c.9. -45 or parentheses e.g. (45).) - Liabilities + Stockholders' Equity Allow. For Retained Earnings Cash + Accts. Rec. Doubtful Accts. + Common Stock + Rev. Assets Beg, sal Record transactions through 4. (Omit recording cost of goods sold.) (Enter negative amounts using either a negative sign preceding the numbered -45 or parentheses e.g. (45).) Assets Liabilities + Stockholders' Equity Allow. For Retained Earnings Doubtful Common Cash + Acets. Rec.- Rev. Stock Accts. Exp. Beg. Bal 5 Sales revenue Accounts receivable Record bad debt expense for 2017, assuming that aging the accounts receivable indicates that estimated bad debts are $82,410. using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Bad debt expense Assets Llabilities Stockholders' Equity Allow. For Retained Cost of goods sold Doubtful Common + Rey Exp. Sales returns Accts. allowances Cash + Accts. Rec. Indicate how accounts receivable and the allowance for doubtful accounts will be reported on the December 31, 2017, balance sheet

Answer 1

Solutions:

AE AC AK AC Al AN Z AA AB AD AF AH AJ AL AN AO AP AC 19 20 21 Blue Spruce Imports 22 Stockholder's Equity Liabilities 23 Assets Common Stock Acts. Rec Allow. for Doubtful Accts. 24 Cash Revenue Expenses + $627,200 Beg. Bal. $37,300 25 26 27 28 29 30 31 Blue Spruce Imports Stockholder's Equity Liabilities 32 Assets Common Stock Acts. Rec. 33 Cash Allow. for Doubtful Accts. Revenue Expenses Beg. Bal. $627,200 $37,300 34 Sales revenue 35 1 2936400 2936400 36 80000 sales returns and allowances 2 -80000 2528500 37 -2528500 38 4 41620 -41620 39 40 41 42 43 Blue Spruce Imports =Liabilities Stockholder's Equity 44 Assets Common Stock Revenue 45 Cash Allow, for Doubtful Accts. Acts. Rec. Expenses C. (82410-37300+41620) $86,730 46 47 48 49 50 51 Sheet79 Sheet77 Sheet247 Sheet248 Sheet258 Sheet78 Sheet80 II

AS AV AW 47 48 49 50 51 52 53 Blue Spruce Imports 54 Balance Sheet 55 56 For the year ended December 31, 2017 57 Assets 58 Current assets: Accounts receivable 59 913480 less: Allowance for doubtful accounts 60 82410 831070 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Sh Sheet77 Sheet247 Sheet248 Sheet258 AU AT