7-2

282 Part 2 Operating Activities ( P 7-2 LO3 Accounting for Accounts Receivable Assume that Dominum Company had the following balances in its receivable accounts on 31, 2016: December Accounts receivable Allowance for bad debts $640,000 20,600 (credit balance) Transactions during 2017 were as follows: $4,200,000 Gross credit sales. Collections of accounts receivable $3,680,000 less cash discounts of $64,000) Sales returns and allowances from credit sales Accounts receivable written off as uncollectible Balance in Allowance for Bad Debts on December 31, 2017 (based on percent of total accounts receivable) 3,616,000 48,000 18,800 43,600 Required: 1. Prepare entries for the 2017 transactions 2. What amount will Dominum Company report for a. Net sales on its 2017 statement of comprehensive income? b Total accounts receivable on its balance sheet of December 31, 2017 Anaveis P 7-3