Your answer is correct. Enter the January 1, 2019, 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 Bal. 948000 T (2) + 51000 (1) 수 3609930 (3) + 2756000 (5) + 28000 (4) + 97000 (5) + 28000 Bal. 1653930 Allowance for Doubtful Accounts (4) + 97000 Bal. + 78000 (5) + 28000 Bal. + 9000 Your answer is correct. Prepare the journal entry to record bad debt expense for 2019, assuming that an aging of accounts receivable indicates that expected bad debts are $77,930. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense 68930 Allowance for Doubtful Accounts 68930
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
At December 31, 2018, Oriole Company reported the following information on its balance sheet.
| Accounts receivable | $948,000 | |
| Less: Allowance for doubtful accounts | 78,000 |
During 2019, the company had the following transactions related to receivables.
| 1. | Sales on account | $3,609,930 | ||
| 2. | Sales returns and allowances | 51,000 | ||
| 3. | Collections of accounts receivable | 2,756,000 | ||
| 4. | Write-offs of accounts receivable deemed uncollectible | 97,000 | ||
| 5. | Recovery of |
28,000 |
Compute the accounts receivable turnover for 2019, assuming the expected bad debt information provided in (c). (Round answer to 2 decimal places, e.g. 25.25.)
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