on december 31 2011 ajacks company reported the following information in its financi 3387149

On December 31, 2011, Ajacks Company reported the following information in its financial statements: Accounts receivable…………………………… $1,193,400 Allowance for doubtful accounts……………… 81,648 Bad debts expense……………………………… 80,448 During 2012, the company had the following transactions related to receivables: 1. Sales were $10,560,000, of which $8,448,000 were on account. 2. Collections of accounts receivable were $7,284,000. 3. Write-offs of accounts receivable were $78,000. 4. Recoveries of accounts previously written off as uncollectible were $8,100. Required: a. Prepare the journal entries to record each of the four items above. b. Set up T accounts for the accounts receivable and the allowance for doubtful accounts and enter their January 1, 2012, balances. Then post the entries from part “a” and calculate the new balances in these accounts. c. Prepare the journal entry to record the bad debts expense for 2012. Ajacks Company uses the aging of accounts receivable method and has prepared an aging schedule, which indicates that the estimated value of the uncollectible accounts as at the end of 2012 is $93,000. d. Show what would be presented on the balance sheet as at December 31, 2012, related to accounts receivable.

 

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