At December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet. Accounts receivable   $647,000 Less: Allowance for doubtful accounts   41,000 During 2018, the company had the following summary transactions related to receivables and sales. Laramie uses the perpetual inventory system. 1.   Sales on account amounted to $2,369,000. The cost of the inventory sold was $2,155,790. 2.   Sales returns and allowances with a total sales price of $38,000 and a cost of $34,580 were restored to inventory. 3.   Collections of accounts receivable were $2,079,000. 4.   Write-offs of accounts receivable deemed uncollectible, $46,200. 5.   Recovery of bad debts previously written off as uncollectible, $13,600. Enter the January 1, 2018, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances before any year-end adjustments. (Post entries in the order of journal entries presented in the previous question.)

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
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Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 6PB: Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable....
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At December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet.

Accounts receivable   $647,000
Less: Allowance for doubtful accounts   41,000


During 2018, the company had the following summary transactions related to receivables and sales. Laramie uses the perpetual inventory system.

1.   Sales on account amounted to $2,369,000. The cost of the inventory sold was $2,155,790.
2.   Sales returns and allowances with a total sales price of $38,000 and a cost of $34,580 were restored to inventory.
3.   Collections of accounts receivable were $2,079,000.
4.   Write-offs of accounts receivable deemed uncollectible, $46,200.
5.   Recovery of bad debts previously written off as uncollectible, $13,600.

Enter the January 1, 2018, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances before any year-end adjustments. (Post entries in the order of journal entries presented in the previous question.)

Accounts Receivable
                                                                       Beg. Bal.End. Bal.(1)(2)(3)(4)(5)                                                                          Beg. Bal.End. Bal.(1)(2)(3)(4)(5)  
                                                                       Beg. Bal.End. Bal.(1)(2)(3)(4)(5)                                                                          Beg. Bal.End. Bal.(1)(2)(3)(4)(5)  
                                                                       Beg. Bal.End. Bal.(1)(2)(3)(4)(5)                                                                          Beg. Bal.End. Bal.(1)(2)(3)(4)(5)  
                                                                       Beg. Bal.End. Bal.(1)(2)(3)(4)(5)                                                                          Beg. Bal.End. Bal.(1)(2)(3)(4)(5)  
                                                                       Beg. Bal.End. Bal.(1)(2)(3)(4)(5)                                                                          Beg. Bal.End. Bal.(1)(2)(3)(4)(5)  
Allowance for Doubtful Accounts
                                                                       Beg. Bal.End. Bal.(1)(2)(3)(4)(5)                                                                          Beg. Bal.End. Bal.(1)(2)(3)(4)(5)  
                                                                       Beg. Bal.End. Bal.(1)(2)(3)(4)(5)                                                                          Beg. Bal.End. Bal.(1)(2)(3)(4)(5)  
                                                                       Beg. Bal.End. Bal.(1)(2)(3)(4)(5)                                                                          Beg. Bal.End. Bal.(1)(2)(3)(4)(5)  
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