Analyzing changes in accounts receivable. Selected data from the financial statements of American Express appear below (amounts in millions I.

Year 4 Year5 Year 6 Year 7 Balance Sheet Accounts and Notes Receivable, net of allowance for uncollectible accounts of $1,419 at the end of Year 4,

$1,411 at the end of Year 5,

$1,559 at the end of Year 6, and $1,728 at the end of Year 7 $41,883 Income Statement Revenues on Account Bad Debt Expense

$43,278

$19,132

$ 2,187

$50,049

$21,278

$ 2,212

$56,631

$23,675

$ 2,439

a. Prepare journal entries for Year 5, Year 6. and Year 7 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 5. Year 6. and Year 7

(2) Bad debt expense divided by revenues on account for Year 5. Year 6. and Year 7

(3) Allowance for uncollectible accounts divided by accounts receivable (gross) at the end of Year 5. Year 6, and Year 7

(4) Write-offs of actual uncollectible accounts divided by average accounts receivable

(gross) for Year 5, Year 6. and Year 7

c. What do the ratios computed in part b suggest about the collection experience of American Express during the three-year period?