What is the correct answer and for part C in the question. How did you come up w

Question

What is the correct answer and for part C in the question. How did you come up with the number?
Problem #3 16 Points PLEASE SHOW ALL OF YOUR WORK AND COMPUTATIONS Donovan Carrier Corp has an Accounts Receivable balance of $1,065,000 and an allowance for doubtful accounts of $99,500 as of 12/31/16. In 2017 they have credit sales of $2,900,000, cash collections on account of $3,050,000, and uncollectible account write-offs of $109,000. Their financial manager estimates 14%of their accounts receivables will be uncollectible on December 31, 2017 A. REQUIRED: Complete the below T-Accts for 2017 including the beginning balances provided and the relevant activity from the journal entries required in parts B. -E Allowance for Uncollectible Accounts Accounts Receivable Bad Debt Expense 1524 B. REQUIRED Provide the journal entry for Donovan for the credit sales for 2017 ACCT Debit Credit

Explanation / Answer

A) Accounts receivable

Bad Debt Expense

Allowance for uncollectable accounts

Opening balance $99,500

B) Accounts receivable account Dr $2,900,000

TO Sales account $2,900,000

C) Cash Account Dr $3,050,000

To Accounts receivcable account $3,050,000

D) Allowance for Uncollectable accounts Dr $109,000

To Accounts receivable account $109,000

E) Bad Debt Expense account Dr $122,340

To Allowance for Uncollectable accounts $122,340

opening Balance $1,065,000 Collections $3,050,000 Credit sales $2,900,000 Bad Debts $109,000 Closing Balance $806,000

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