Project #45315 - Accounting

Problem 9-1A

At December 31, 2013, House Co. reported the following information on its balance sheet.

Accounts receivable   $960,000
Less: Allowance for doubtful accounts   80,000

During 2014, the company had the following transactions related to receivables.

1.   Sales on account   $3,700,000
2.   Sales returns and allowances   50,000
3.   Collections of accounts receivable   2,810,000
4.   Write-offs of accounts receivable deemed uncollectible   90,000
5.   Recovery of bad debts previously written off as uncollectible   29,000
 
Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No
Account Titles and Explanation
Debit
Credit
1.
 
2.
 
3.
 
4.
 
5.
 
 
(To reverse account previously written off.)
   
 
 
  (To record the collection of accounts receivable.)    
 

Enter the January 1, 2014, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T-accounts), and determine the balances. (Post entries in the order of journal entries presented in the previous part.)

Accounts Receivable
Allowance for Doubtful Accounts
 

Prepare the journal entry to record bad debt expense for 2014, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
 

Compute the accounts receivable turnover for 2014 assuming the expected bad debt information provided in (c). (Round answer to 2 decimal places, e.g. 25.25.)

Accounts receivable turnover ratio    times

Subject Business
Due By (Pacific Time) 10/28/2014 10:55 pm
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy