# 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 (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. Allowance for Doubtful Accounts (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal. (1) (2) (3) (4) (5) Bal.

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
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