dolution

At year-end 2004, Fenton Company reported gross accounts receivable of 3,650,000 and an allowance for doubtful accounts of 450,000. During its fiscal 2005 year, it recorded sales of 18,600,000 on credit, and collected 18,750,000 from customers. It wrote off 165,000 of bad debts and estimated that it required an allowance for doubtful accounts at the end of 2005 equal to 3% of its 2005 sales. (a) Use the format presented in this chapter to identify how each of the year 2005 events would be entered into the accounting system. (b) What was the net amount of accounts receivable reported by Fenton on its 2005 balance sheet?