At December 31, 2021, Sheridan Imports reported this information on its balance sheet.

Accounts receivable		$594,000
Less: Allowance for doubtful accounts		38,000

During 2022, the company had the following transactions related to receivables.

1.		Sales on account		$2,590,000
2.		Sales returns and allowances		55,000
3.		Collections of accounts receivable		2,290,000
4.		Write-offs of accounts receivable deemed uncollectible		45,000
5.		Recovery of bad debts previously written off as uncollectible		15,000

Part 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. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.	enter an account title to record the first transaction	enter a debit amount	enter a credit amount
	enter an account title to record the first transaction	enter a debit amount	enter a credit amount
2.	enter an account title to record the second transaction	enter a debit amount	enter a credit amount
	enter an account title to record the second transaction	enter a debit amount	enter a credit amount
3.	enter an account title to record the third transaction	enter a debit amount	enter a credit amount
	enter an account title to record the third transaction	enter a debit amount	enter a credit amount
4.	enter an account title to record the fourth transaction	enter a debit amount	enter a credit amount
	enter an account title to record the fourth transaction	enter a debit amount	enter a credit amount
5.	enter an account title to record the fifth transaction to reinstate account previously written off	enter a debit amount	enter a credit amount
	enter an account title to record the fifth transaction to reinstate account previously written off	enter a debit amount	enter a credit amount
	(To reinstate account previously written off)
	enter an account title to record the fifth transaction	enter a debit amount	enter a credit amount
	enter an account title to record the fifth transaction	enter a debit amount	enter a credit amount
	(To record collection of accounts receivable)

eTextbook and Media

List of Accounts

Part 2

Enter the January 1, 2022, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances. (Post entries in the order of journal entries posted in the previous part)

Accounts Receivable
choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose the end date of the accounting periodBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a debit balance	choose the end date of the accounting periodBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a credit balance
Allowance for Doubtful Accounts
choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a debit amount	choose a transaction dateBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a credit amount
choose the end date of the accounting periodBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a debit balance	choose the end date of the accounting periodBal.(1)(2)(3)(4)(5) Bal.(1)(2)(3)(4)(5)	enter a credit balance

eTextbook and Media

List of Accounts

Part 3

Prepare the journal entry to record bad debt expense for 2022, assuming that aging the accounts receivable indicates that estimated bad debts are $50,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
enter an account title for the journal entry to record the bad debt expense for 2022	enter a debit amount	enter a credit amount
enter an account title for the journal entry to record the bad debt expense for 2022	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Part 4

Compute the accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.4.)

Accounts receivable turnover

enter the accounts receivable turnover in times rounded to 1 decimal place

times

eTextbook and Media

List of Accounts

Part 5

Compute the average collection period. (Round answer to 1 decimal place, e.g. 12.4. Use 365 days for calculation.)

Average collection period

enter the average collection period in days rounded to 1 decimal place