Question - The following information is available for a company as of January 1st, 2015:
Accounts Receivable $185,000
Allowance for Doubtful Accounts (62,500)
Accounts Receivable (net) 122,500
The following events took place during 2015:
During the year, the company had credit sales of $256,700.
The company wrote off accounts worth $28,900 as uncollectible.
The company estimated bad debts as 3.5% of credit sales.
The company collected $286,000 of cash from accounts receivable.
1) Record the four events above that took place during 2015 in journal entry form.
2) Determine the Accounts Receivable (net) amount as of December 31, 2015. Show your work.