For Their Fiscal Year Ended December 31, 2017, the Texas

Essay

For their fiscal year ended December 31, 2017, the Texas Tech Store had credit sales of $750,000. At year end, the unadjusted trial balance shows a debit balance of $1,800 in the Allowance for Doubtful Accounts, and $140,000 in Accounts Receivable. The credit manager prepared an aging schedule of accounts receivable and estimates that $5,200 will prove to be uncollectible.On March 4, 2018 the credit manager authorizes a write off of the $2,000 balance owed by Crystal Rivers.Instructions
a. Prepare the adjusting entry to record the estimated bad debts expense for 2017.
b. Show the statement of financial position presentation of accounts receivable at December 31, 2017.
c. On March 4, 2018, before the write off, assume the balance of Accounts Receivable account is $175,000 and the balance of Allowance for Doubtful Accounts is a credit of $5,500. Record the entry to write off the Rivers account. Also, show the statement of financial position presentation of accounts receivable before and after the write off.