50.1K

Verified Solution

Link Copied!

Problem 9-01A a-d (Video) At December 31, 2019, Blue Co. reported the following information on its balance sheet. Accounts receivable $968,400 Less: Allowance for doubtful accounts 78,400 During 2020, the company had the following transactions related to receivables. 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible $3,713,900 50,800 2,804,000 90,600 28,100 Your answer is correct. 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. Accounts Receivable Sales Revenue | 3,713,900 2. Sales Returns and Allowances 50,800|| | Accounts Receivable IN 50,800 3. Cash 2,804,000 Accounts Receivable Il 2,804,000 4. Allowance for Doubtful Accounts 90,600 Accounts Receivable 90,600 5. Accounts Receivable 28,100|| 28,100 Allowance for Doubtful Accounts (To reverse account previously written off.) Cash 28,100 Accounts Receivable (To record the collection of accounts receivable.) Your answer is correct. Enter the January 1, 2020, 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 50,800 2,804,000 90,600 28,100 1,736,900 Il llowance for Doubtful Accounts 90,600 || Bal. 1 78,400 5 28,100 il Bal. 15,900 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare the journal entry to record bad debt expense for 2020, 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 Bad Debt Expense 115000 115000 LINK TO TEXT LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Compute the accounts receivable turnover for 2020 assuming the expected bad debt information provided in (c). (Round answer to 2 decimal places, e.g. 25.25.) Accounts receivable turnover ratio times

Answer & Explanation Solved by verified expert

See Answer