Problem 6-6 Prepare a tabular summary that includes the following accounts: Cash

Question

Problem 6-6

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).)

At December 31, 2016, Concord Imports reported this information on its balance sheet.
Accounts receivable $632,300 Less: Allowance for doubtful accounts 36,420
During 2017, the company had the following transactions related to receivables.
1. Sales on account $2,931,300 2. Sales returns and allowances 76,100 3. Collections of accounts receivable 2,578,700 4. Write-offs of accounts receivable deemed uncollectible 42,440

Explanation / Answer

1. Cash Account

Opening Balance 0

Collection from Receivables 2578700

Closing Cash 2578700

2. Accounts Receivable

Opening Balance 632300

Sales 2931300

Sales Return (76100)

Collection (2578700)

Bad Debts (42440)

Closing Balance 9348550

3.Allowance for Doubtful Accounts

Opening Balance 36420

Provision created during the year 90680

written off (42440)

Closing Balance 84660   

4. Revenue

Sales 2391300

Sales Return (76100)

Net Sales 2855200

5.Expenses

Bad Debts 90680

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