Question

Problem 8-02A (Part Level Submission) At December 31, 2021, Pharoah Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $558,400 39,000 During 2022, the company had the following transactions related to receivables. 1. 2. Sales on account Sales returns and allowances Collections of accounts receivale Write-offs of accounts receivable deemed uncollectible Recovery of bad debts previously written off as uncollectible $2,015,000 65,100 1,715,000 42,000 14,000 4. 5.

Answer 1

Solution:

Accounts receivables
Event	Debit	Event	Credit
Beg. Bal.	$558,400.00	2	$65,100.00
1	$2,015,000.00	3	$1,715,000.00
5	$14,000.00	4	$42,000.00
		5	$14,000.00
End bal	$751,300.00

Allowance for doubtful accounts
Event	Debit	Event	Credit
4	$42,000.00	Beg. Bal.	$39,000.00
		5	$14,000.00
		End bal	$11,000.00