Answer:
<u>Explanation:</u>
Requirement :
Date	Account title and Explanation      Debit                      Credit
Dec.31   Accounts receivable                $2,346,000  
            Sales revenue                                                $2,346,000
 [To record credit sales for the year]      
Dec.31	Cash                                    $2,350,000  
           Accounts receivable                                    $2,350,000
 [To record collections on account for the year]      
Feb.17	Allowance for doubtful account    $7,500  
            Accounts receivable-R.St. John               $7,500
 [To write off R. St. John's account]      
May 28	Allowance for doubtful account   $4,800  
           Accounts receivable-G. Herberger               $4,800
 [To write off G. Herberger's account]      
Oct 13	Accounts receivable-G. Herberger	$1,200  
             Allowance for doubtful account                 $1,200
 [To reinstate G. Herberger's account for partil recovery]      
Oct 13	Cash                                                  $1,200  
               Accounts receivable-G. Herberger          	$1,200
 [To record collection from G. Herberger]      
Dec 15	Allowance for doubtful account	$5,000  
                 Accounts receivable-R. Clancy                 $5,000
 [To write-off R. Clancy's account]      
Dec 31	Bad debt expense [$2,346,000 x 0.8%]	$18,768  
                 Allowance for doubtful account                  $18,768
 [To record allowance for doubtful accounts]  
<u>Requirement b:
</u>
Accounts Receivable	$242,700
Less: Allowance for Doubtful accounts	$19,168
Accounts receivable net	$223,532
<u>Calculations:
</u>
T-Accounts
Accounts receivable              Allowance for doubtful account
$264,000 Beg.                                    $16,500 Beg.
$2,346,000          $2,350,000  $7,500             $1,200
$1,200                       $7,500      $4,800                 $18,768
                                $4,800  $5,000  
                                 $1,200    
                                  $5,000    
                                     $242,700 End.	                  $19,168 End.