Question

At December 31, 2016, Monty Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accou $652,800 38,030 nts During 2017, the company had the following transactions related to receivables 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible $2,883,800 68,400 2,592,000 44,010 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 Cash Accts. Rec. - Doubtful Accts. + Common Stock + Rev Exp. 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).) Assets -Liabilities+ Stockholders' Equity Allow. For Retained Earnings Cash + Accts. Rec.Doubtful Accts. + Common Stock + Rev Exp. Beg. Bal 4 SHOW LIST OF ACCOUNTS LINK TO TEXT Record bad debt expense for 2017, assuming that aging the accounts recevable indicates that estimated bad debts are S8,89О. (Enter negative amounts us preceding the number e.g. -45 or parentheses e.g. (45).) et era negatives m Assets Liabilities Stockholders' Equity Allow. For Retained Earnings Exp. Cash Accts. Rec.Doubtful Accts. 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. MONTY IMPORTS Balance Sheet Assets SHOW LIST OF ACCOUNTS LINK TO TEXT

Answer 1

Assets Liabilities+ Stockholders' equit Retained earnings Exp Cash Accts. Rec. Allow. For. Doubt. Accts. - + Common stockRev Beg. Bal $652,800 $38,030 Assets Liabilities+ Stockholders' equit Retained earnings Exp Cash Accts. Rec. Allow. For. Doubt. Accts. - + Common stockRev $652,800 $2,883,800 $68,400 2,592,000$2,592,000 $44,010 Beg. Bal $38,030 $2,883,800 $68,400 sales Sales return 2 4 44,010 Assets Liabilities+ Stockholders' equit Retained earnings Exp Cash Accts. Rec. Allow. For. Doubt. Accts. - + Common stockRev $87,870 $87,870 Bad debt expense MONTY IMPORTS Balance Sheet As on December 31, 2017 Assets Current assets: Accounts receivable Less: Allowance for doubful accounts $832,190 1,890 $750,300 Working note for c and balance sheet: Allowance for doutful accounts Write off 010 Beg. Bal $38,030 Bad debt expense (Balancing figure) End. Bal 7,870 Accounts receivable $652,800 $2,883,800 $68,400 $2,592,000 010 Beg. Bal 2 4 End. Bal