Question
2. Receivables Journal Entries. Web Security, Inc. (WSI) began the year with an Accounts Receivable balance of $43,000 and a credit balance of $4,000 in
2. Receivables Journal Entries. Web Security, Inc. (WSI) began the year with an Accounts Receivable balance of $43,000 and a credit balance of $4,000 in Allowance for Doubtful Accounts. Transactions impacting these accounts follow. Journalize these transactions:
a. For the current year, WSI provided $490,000 of services on account. b. WSI collected $465,000 of cash on account in the current year. c. WSI wrote off actual uncollectible accounts in the amount of $3,200. d. A $400 account that was written off was collected two months later. e. At the end of the year, WSI recorded estimated uncollectibles at 0.5% of credit sales. f. For each entry a e above, fill in the following chart by placing a + for increase, a for decrease, or N/E for no effect. g.Draw T-Accounts for Accounts Receivable and Allowance for Doubtful Accounts. Post the beginning balances and journal entries.
h. Compute net accounts receivable at year-end.
Net Accounts Receivable =
i. Compute the accounts receivable turnover.
Accounts Receivable Turnover =
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