The September 30, 2011, records of Image Communications include these accounts:Accounts Receivable……………………………… $260,000Allowance for Doubtful Accounts…………… (8,100)During the year, Image Communications estimates doubtful-account expense at 1% of credit sales. At year-end, the company ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 2011, the company completed the following selected transactions:Dec 28 Wrote off as uncollectible the $1,500 account receivable from Blue Carpets and the $400 account receivable from Show-N-Tell Antiques.Dec 31 Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end, based on the aging of receivables, which follows.Requirements1. Record the transactions in the journal. Explanations are not required.2. Prepare a T-account for Allowance for Doubtful Accounts and post to that account.3. Show how Image Communications will report its accounts receivable in a comparative balance sheet for 2011 and 2010. Use the three line reporting format. At December 31, 2010, the company’s Accounts Receivable balance was $213,000 and the Allowance for Doubtful Accounts stood at$4,200.
The September 30 2011 records of Image Communications include