Analyzing Accounts Receivable Changes $($FSET$)$

During the year, Grant Corporation recorded credit sales of $$7,168,000$ and bad debts expense of $$94,080.$ Write$-$offs of uncollectible accounts totaled $$87,360,$ and one account, worth $$26,880$ that had been written off in an earlier year, was collected during the year.

a$.$ Report each of the above transactions in the financial statement effects template to show the effect of these

entries on the balance sheet and income statement.

Note: Use negative signs with your answers, when appropriate.

Balance Sheet Income Statement

Cash Noncash Contra Contributed Earned Net

Transaction Asset $+$ Assets $-$ Assets $=$ Liabilities $+$ Capital $+$ Capital Revenues $-$ Expenses $=$ Income

i$.$ Sales on account.

ii$.$ Bad debts expense.

iii. Write$-$off of uncollectible accounts.

iv$.$ Reinstated previously written$-$off account.

v$.$ Collect reinstated account.

vi$.$ Collect cash on sales.

b$.$ If net accounts receivable increased by $$616,000,$ how much cash was collected from credit customers during the year? Report the transaction in the financial statement effects template. $Answer $55$