E8-2 Determining Financial Statement Effects of Bad Debt Expense Estimates and Write-offs (LO 8-2] Blackhorse Productions, Inc. estimates $9.750 Bad Debits Expense at the end of accounting period. The appropriate bad debt adjustment was recorded Lates, an account receivable for $1,000 was determined to be uncollectible actual bad debt and was written of Required: For each transaction isted above, indicate the amount and direction for increase or for decrease) of effects on the financial statement accounts and on the overall accounting equation (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Stockholders' Equity PA8-5 Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect (LO 8-4) Cola Inc. and Soda Co. are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Fiscal Year Ended Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Cola Inc. 2015 2014 2013 $32.219 $27,690 $28,944 4.418 3.753 3.081 42 49 45 4,376 3,704 3,036 Soda Co. 2015 2014 2013 $54,838 $40,232 $40.251 6.407 4.654 3.724 138 84 64 6,269 4,570 3,660 Required: 1. Calculate the receivables turnover ratios and days to collect for Cola Inc. and Soda Co. for 2015 and 2014. (Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) 2015 Cola Inc. Soda Co. 2014 Cola Inc. Soda Co. Receivables Tumover Ratio Days to collect 2. Which of the companies is quicker to convert its receivables into cash? Cola Inc Soda Co