Question

At the end of the prior year, Durney's Outdoor Outfitters reported the following information. Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) $ 48,127 Allowance for Doubtful Accounts (XA) 8,409 Accounts Receivable (Net) (A) $ 39,718 During the current year, sales on account were $305,048, collections on account were $290,100, write-offs of bad debts were $6,994, and the bad debt expense adjustment was $4,710. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations. 1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year. 1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 10 Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year. (Amounts to be deducted should be indicated by a minus sign.) DURNEY'S OUTDOOR OUTFITTERS Balance Sheet (Partial) As of December 31 Current assets:

Answer 1

Solution 1a:

Accounts Receivable (Gross)
Beg. Bal.	48,127
Net sales	3,05,048	6,994	Write offs
		2,90,100	Collections on acct.
End bal.	56,081
Allowance for doubtful accounts
		8,409	Beg. Bal.
Write offs	6,994	4,710	Bad debt expense
		6,125	End bal.

Solution 1b:

DURNEY OUTFITTERS
Income Statement(Partial)
For year ended December 31
Operating expenses:
Bad debt expenses	4,710

Solution 1c:

DURNEY OUTFITTERS
Balance Sheet (Partial)
For year ended December 31
Current Aseets:
Accounts Receivable	56,081
Allowance for doubtful Accounts	-6,125
Accounts Receivable net		49,956