9781119493563

P8.2A (LO 2, 4), AP At December 31, 2021, Suisse Imports reported this information on its balance sheet. Prepare journal entries related to bad debt expense, and compute ratios. Accounts receivable $600,000 Less: Allowance for doubtful accounts 37,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account $2,500,000 2. Sales returns and allowances 50,000 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible 2,200,000 41,000 5. Recovery of bad debts previously written off as uncollectible 15,000 Instructions a. Prepare the journal entries to record each of these five transactions. Assume that no cash discou were taken on the collections of accounts receivable. (Omit cost of goods sold entries.) b. Enter the January 1, 2022, balances in Accounts Receivable and Allowance for Doubtful Accour post the entries to the two accounts (use T-accounts), and determine the balances. A/R bal. $809,00o c. Prepare the journal entry to record bad debt expense for 2022, assuming that aging the account receivable indicates that estimated bad debts are $46,000. d. Compute the accounts receivable turnover and average collection period. P8.6A (LO 1, 3), AP On January 1, 2022, Harvee Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $3,700. Harvee Company prepares financial statements annually During the year, the following selected transactions occurred. Journalize various receivables transactions. Sold $4,000 of merchandise to Rian Company, terms n/30. Jan. Accepted a $4,000, 4-month, 99% promissory note from Rian Company for balance due. Feb. 12 Sold $12,000 of merchandise to Cato Company and accepted Cato's $12,000, 2-month, 10 note for the balance due. Sold $5,200 of merchandise to Malcolm Co., terms n/10. Accepted a $5,20o, 3-onth, 8% note from Malcolm Co. for balance due 26 Apr. Collected Cato Company note in full. Collected Rian Company note in ful 12 June 2 Sold $2,000 of merchandise to Gerri Inc. and accepted a $2,000, 6-month, 129% note for t amount due. 15 Instructions