At December 31, 2016, Pronghorn Corp Imports reported this information on its balance sheet.Accounts receivable $632,300Less: Allowance for doubtful accounts 36,420During 2017, the company had the following transactions related to receivables.1. Sales on account $2,931,3002. Sales returns and allowances 107,2203. Collections of accounts receivable 2,578,7004. Write-offs of accounts receivable deemed uncollectible 42,4405. Recovery of bad debts previously written off as uncollectible 16,490 Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)No.Account Titles and ExplanationDebitCredit1. 2. 3. 4. 5. (To reinstate account previously written off) Enter the January 1, 2017, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances. (Post entries in the order of journal entries posted in the previous part)Accounts Receivable Allowance for Doubtful Accounts Prepare the journal entry to record bad debt expense for 2017, assuming that aging the accounts receivable indicates that estimated bad debts are $53,520. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit Compute the accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.5.)Accounts receivable turnover Type your answer here times eTextbook and MediaList of Accounts Compute the average collection period. (Round answer to 1 decimal place, e.g. 12.5.)Average collection period Type your answer here days

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Answered: At December 31, 2016, Pronghorn Corp…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

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At December 31, 2016, Pronghorn Corp Imports reported this information on its balance sheet.

Accounts receivable		$632,300
Less: Allowance for doubtful accounts		36,420

During 2017, the company had the following transactions related to receivables.

1.	Sales on account	$2,931,300
2.	Sales returns and allowances	107,220
3.	Collections of accounts receivable	2,578,700
4.	Write-offs of accounts receivable deemed uncollectible	42,440
5.	Recovery of bad debts previously written off as uncollectible	16,490

Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Omit cost of goods sold entries.) (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 reinstate account previously written off)

Enter the January 1, 2017, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances. (Post entries in the order of journal entries posted in the previous part)

Accounts Receivable





Allowance for Doubtful Accounts

Prepare the journal entry to record bad debt expense for 2017, assuming that aging the accounts receivable indicates that estimated bad debts are $53,520. (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. (Round answer to 1 decimal place, e.g. 12.5.)

Accounts receivable turnover

Type your answer here

times

eTextbook and Media

List of Accounts

Compute the average collection period. (Round answer to 1 decimal place, e.g. 12.5.)

Average collection period

Type your answer here

days

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