Analyzing changes in accounts receivable. Selected data from the financial statements of Sears, a retail department store chain, appear below (amounts in millions).

a. Prepare journal entries for Year 7, Year 8, and Year 9 for the following events:
(1) Revenues on account (2) Provision for estimated uncollectibles (3) Write-off of actual uncollectible accounts (4) Collection of cash from customers

b. Compute the amount of the following ratios:
(1) Accounts receivable turnover ratio for Year 7, Year 8, and Year 9 (2) Provision for estimated uncollectibles divided by revenues for Year 7, Year 8, and Year 9 (3) Allowance for uncollectible accounts divided by accounts receivable (gross) at the end of Year 7, Year 8, and Year 9 (4) Write-offs of actual uncollectible accounts divided by average accounts receivable (gross) for Year 7, Year 8, and Year 9

c. What do the ratios computed in part \(\mathbf{b}\) suggest about the collection experience of Sears during the three-year period?

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Balance Sheet Accounts and Notes Receivable, net of allowance for uncollectible accounts of $1,113 at the end of Year 6, $974 at the end of Year 7, $760 at the end of Year 8, and $686 at the end of Year 9 Income Statement Sales on Account.. Provision for Estimated Uncollectibles Year 6 Year 7 Year 8 Year 9 $19,843 $17,972 $18,033 $17,317 $39,953 $39,484 $40,937 $ 1,287 $ 871 $ 884