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9-1A (P9-1A) December 31, 2007, Leis Co. reported the following information on its balance sheet. Accounts receivable $960,000 Less: Allowance for doubtful accounts 80,000 During
9-1A (P9-1A) December 31, 2007, Leis Co. reported the following information on its balance sheet. Accounts receivable $960,000 Less: Allowance for doubtful accounts 80,000 During 2008, the company had the following transactions related to receivables. 1. Sales on account $3,200,000 2. Sales returns and allowances 50,000 3. Collections of accounts receivable 2,810,000 4. Write-offs of accounts receivable deemed uncollectible 90,000 5. Recovery of bad debts previously written off as uncollectible 24,00 Compute the accounts receivable turnover ratio for 2008 Instruction 1. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. 2. Enter the January 1, 2008, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances. 3. Compute the accounts receivable turnover ratio for 2008, assuming that aging of accounts receivables indicates that expected bad debts are $115,000. 4. Compute the accounts receivable turnover ratio for 2008
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