Question

 At January 1, 2018. Foress Imports Inc. reported the following on its statement of financial position:

 Accounts receivable

 $1,759,000

 Allowance for doubtful accounts

 122,000

 During 2018, the company had the following summary transactions for receivables: 1. Sales on account, $5,383,000; Cost of goods sold, $2,960,000

 2. Sales returns and allowances, $86,000; Cost of goods returned to inventory, $47,000 3. Collections of accounts receivable, S5,383,000

 4. Interest added to overdue accounts, S406,000

 5. Write offs of accounts receivable deemed uncollectible, $145,000

 6. Collection of accounts previously written off as uncollectible, $69,000

 7. After considering all of the above transactions, total estimated uncollectible accounts, $111,000

 

Answer 1

No.	Account Titles and Explanation	Debit	Credit
1	Accounts receivable	5383000
	Sales revenue		5383000
	(To record sales)
	Cost of goods sold	2960000
	Inventory		2960000
	(To record cost of goods sold)
2	Sales returns and allowances	86000
	Accounts receivable		86000
	(To record sales returns)
	Inventory	47000
	Cost of goods sold		47000
	(To record cost of goods returned
3	Cash	5383000
	Accounts receivable		5383000
4	Accounts receivable	406000
	Interest revenue		406000
5	Allowance for doubtful accounts	145000
	Accounts receivable		145000
6	Accounts receivable	69000
	Allowance for doubtful accounts		69000
	(To reverse write-off of account receivable)
	Cash	69000
	Accounts receivable		69000
	(To record collection of account receivable)
7	Bad debts expense	65000
	Allowance for doubtful accounts		65000

Kindly fill appropriately as formats provided are split over pages and hence not understandable.

Accounts Receivable
Jan. 1 bal.	1759000	2	86000
1	5383000	3	5383000
4	406000	5	145000
6	69000	6	69000
Dec. 31 bal.	1934000
Allowance for Doubtful Accounts
5	145000	Jan. 1 bal.	122000
		6	69000
		7	65000
		Dec. 31 bal.	111000

Carrying amount at January 1: $1759000 - $122000 = $1637000

Carrying amount at December 31: $1934000 - $111000 = $1823000

FORESS IMPORTS inc.
Statement of Financial Position (Partial)
At December 31, 2018
Assets
Accounts receivable	1934000
Less: Allowance for doubtful accounts	111000	1823000
FORESS IMPORTS inc.
Income Statement (Partial)
For the Year Ended December 31, 2018
Sales revenue	5383000
Less: Sales returns and allowances	86000
Net sales		5297000
Less: Cost of goods sold		2913000
Gross profit		2384000
Other revenues
Interest revenue		406000
Expenses
Bad debts expense		65000