Reporting Bad Debt Expense and Accounts Receivable E14-6 At the end of the prior year, Durney’s Outdoor Outfitters reported the following information

Reporting Bad Debt Expense and Accounts Receivable E14-6 At the end of the prior year, Durney’s Outdoor Outfitters reported the following information. Accounts Receivable, Dec. 31 prior year Accounts Receivable (Gross) (A) $48,067 Allowance for Doubtful Accounts (XA) 8,384 Accounts Receivable (Net) (A) $39,683 During the current year, sales on account were $304,423, collections on account were $289,850, write-offs of bad debts were $6,969, and the bad debt expense adjustment was $4,685. Required: Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year. ( Hint: Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values.) Disregard income tax considerations.

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