Question - Reporting Bad Debt Expense and Accounts Receivable
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)$48,067Allowance for Doubtful Accounts (XA) 8,384Accounts Receivable (Net) (A)$39,683
During the current year, sales on account were $304,423, collections on account were $289,850, write-offs of bad debts were $6,969, and the bad debt expense adjustment was $4,685.
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 and balance sheet for the current year.