Reference no: EM132276453

Question - At January 1, 2016, bob had accounts receivable of 31,000, and allowance for bad debts had a credit balance of 3,000.during the year, bob recorded the following:

a. Sales of 174,000 (157,000 on account; 17,000 for cash). Ignore cost of goods sold.

b. Collections on account, 131,000

c. Write-offs of uncollectable receivables, 2,200

1. Journalize bobs transactions that occurred during 2016.the company uses the allowance method.

2. Post bobs transactions to the accounts receivable and allowance for bad debts t- accounts.

3. Journalize bobs adjustments to record bad debts expense assuming bobs estimates bad debts as 3% of accounts receivable. Post the adjustments to the appropriate t accounts.

4. Show how bob will report net accounts receivables on its December 31, 2016, balance sheet.