Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. at december 31, 2013, dustin company reported this

At December 31, 2013, Dustin Company reported this information on its balance sheet. Accounts receivable...

60.1K

Verified Solution

Question

Accounting

At December 31, 2013, Dustin Company reported this information on its balance sheet.

Accounts receivable $960,000

Less: Allowance for doubtful accounts 78,000

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

1.

Sales on account

$3,600,000

2.

Sales returns and allowances

150,000

3.

Collections of accounts receivable

3,100,000

4.

Write-offs of accounts receivable deemed uncollectible

92,000

5.

Recovery of bad debts previously written off as uncollectible

28,000

(b) A/R bal. $1,218,000

Instructions

(a) 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.)

(c) Prepare the journal entry to record bad debt expense for 2014, assuming that aging the accounts receivable indicates that expected bad debts are $140,000.(b) 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.

(d) Compute the accounts receivable turnover and average collection period.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Chapter 9 discussed the importance of stakeholder engagement in policy making. The author presented several benefits...

Accounting
1.2K views

Presented here is the income statement for Fairchild Co. for March: Sales $ 84,000 Cost of...

Physics
1.2K views

40 cm What is the distance of the final image formed by this lens system...

Physics
1.2K views

Obtain the output voltage across the 15k resistance measured with the help of a voltmeter...

Basic Math
1.2K views

A survey seeks to find if adults in Minnesota feel women have better job opportunities...

Basic Math
1.2K views

Inn Provide your answer below 8 mi Shoreline 10 mi A visitor is staying in...

Calculus
1.2K views

Find the real solutions of the equation 13 2t 6 15 Select the correct choice...

Calculus
1.2K views

Find the missing factor, A.x (A) = -14x

Calculus
1.2K views

Use the definition of the derivative to evaluate the limit lim h 0 lim h...

Accounting
1.2K views

Fuel-Hedging at Alaska Airlines Case Study Questions: 1. How many...

Accounting
1.2K views

Prepare a classified balance sheet as of January 31, 2021 ...

Accounting
1.2K views

$1000 at 3% compounded semiannually for 10 years?