Analyzing changes in accounts receivable. Selected data from the financial statements of Whirlpool Corporation appear below (amounts in millions):

a. Prepare journal entries for Year 5, Year 6. and Year 7 for the following events:
(1) Sales on account (2) Provision for estimated uncollectible accounts (3) Write-off of actual bad debts (4) Collection of cash from customers

b. Compute the amount of the following ratios:
(1) Bad debt expense divided by sales on account for Year 5, Year 6, and Year 7 (2) Allowance for uncollectible accounts divided by accounts receivable (gross)
at the end of Year 5. Year 6. and Year 7

c. What do the ratios computed in part b suggest about the manner in which Whirlpool Corporation provides for estimated uncollectible accounts?

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Balance Sheet Accounts Receivable, net of allow- ance for uncollectible accounts of $2.4 at the end Year 4, $2.6 at the end of Year 5, $3.3. at the end of Year 6, and $4.4 at the end of Year 7 Income Statement Sales on Account Statement of Cash Flows Addback to Net Income in Deriving Cash Flow from Operations: Bad Debt Expense Year 4 Year 5 Year 6 Year 7 $ 247.0 $ 260.9 $ 323.4 $ 419.5 $3,987.6 $4,008.7 $4.179.0 $4,314.5 $ 5.4 $ 6.0 $ 17.7 $ 11.5