On December 31 2015 Ajacks Company reported the

following information #202

On December 31, 2015, Ajacks Company reported the following information in its financial
statements:Accounts receivable ............ $1,193,400Allowance for doubtful accounts ........
81,648Bad debt expense ................... 80,448During 2016, 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. Writeoffs of accounts
receivable were $78,000.4. Recoveries of accounts previously written off as uncollectible were
$8,100 (note that this amount is not included in the collections referred to in note 2
above).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, 2016, 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
2016. 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 2016 is $93,000.d. Show what would be presented on the statement of financial position
as at December 31, 2016, related to accounts receivable.View Solution:
On December 31 2015 Ajacks Company reported the following information

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