3 5 6 7 At December 31, 2020, Muslow Imports reported the following information on its balance sheet: Accounts Receivable $1,000,000 Less: Allowance for Doubtful Accounts 60,000 Net Realizable Value 5940.000 During 2021, the company had the following transactions related to receivables: 1 Sales on account $2,600.000 2 Sales Returns & allowances 40,000 3 Collections of acccounts receivable 2,300,000 A Write-offs of accounts deemed uncollecti 65,000 5 Recovery of bad debts previously written 25,000 9 10 13 12 13 14 81: Prepare summary journal entries for the five transactions listed above. No explanations needed. Date Particulars Debit Credit 15 16 17 18 19 20 21 22 3 24 25 27 5 za 29 30 37 32 112: Prepare the journal entry to record bad debts expense for 2021. Bad debts are estimated at 2% of net credit sales. Date Particulars Debit Credil Explanation of Calculation 13: How will not Accounts Recnivable be presented on the balance sheets at December 31, 20217 45 TAKING IT FURTHER: Why doesn't a company sell to only those customers it known for sure it can collect from? 50 The following ratios are available for Hake Company 2013 2019 2020 Current Ratio 2011 16101 1.4 to 1 Acid Test Ratio 1 1 1 1 0.8 10 0.7 to 1 Receivables tumover 73 times *HU 10.3 times Inventory tumover 6 3 times 6.1 times 4 times 1. Calculate the collection period, days sales in inventory, and operating cycle in days for each year. If not using spreadsheet matters comment til alt m) to explain what you calculations were 2018 2019 2020 Collection Period Day Operaling Cycle 62 #2: Has Hake Company's liquidity improved or weakened over the 3 year period? Explain. 63 54 65 66 67 #3: Do changes in turnover ratios affect profitability? Explain. 68 69 70 14: Do changes in turnover ratios affect cash flow? Explain 27 72 73