Reference no: EM132338449
Question
At January 1, 2018, Golden Imports Inc. reported the following on its statement of financial position:
Accounts receivable $1,766,000
Allowance for doubtful accounts 123,000
During 2018, the company had the following summary transactions for receivables:
1. Sales on account, $5,382,000; Cost of goods sold, $2,968,000
2. Sales returns and allowances, $86,000; Cost of goods returned to inventory, $49,000
3. Collections of accounts receivable, $5,382,000
4. Interest added to overdue accounts, $401,000
5. Write offs of accounts receivable deemed uncollectible, $150,000
6. Collection of accounts previously written off as uncollectible, $66,000
7. After considering all of the above transactions, total estimated uncollectible accounts, $95,000
1) Prepare T accounts for Accounts Receivable and Allowance for Doubtful Accounts,
(2) enter the opening balances,
(3) post the above summary entries, and
(4) determine the ending balances.