No. Account Titles and Explanation Debit Credit 1Accounts Receivable 2,414,000 Sales 2,414,000 (To record sales) Cost of Goods Sold 1,979,480 Inventory 1,979,480 (To record cost of the merchandise sold) 2.Sales Returns and Allowances 41,000 Accounts Receivable 41,000 To record sales returns and allowances) Inventory 33,620 Cost of Goods Sold 33,620 (To record cost of sales on sales returns) 3. Cash 2,091,000 Accounts Receivable 2,091,000 4. Allowance for Doubtful Accounts 46,500 Accounts Receivable 46,500 5. Accounts Receivable 15,500 Allowance for Doubtful Accounts 15,500 To reverse write-off of account receivable) Cash 15,500 Accounts Receivable 15,500 To record recovery of uncollectible Your answer is correct. Enter the January 1, 2018, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances before any year-end adjustments. (Post entries in the order of journal entries presented in the previous question.) Accounts Receivable Beg. Bal. v 595,000 41,000 2,091,000 46,500 15,500 2,414,000 15,500 End. Bal 830,500 Allowance for Doubtful Accounts Beg. Bal. v 41,000 15,500 10,000 46,500 End. Bal Your answer is correct. Prepare the journal entry to record bad debts expense for 2018, assuming that aging the accounts receivable indicates that estimated uncollectible accounts receivable are $49,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Bad Debts Expense 39,800 Allowance for Doubtful Accounts 39,800 XYour answer is incorrect. Calculate the receivables turnover ratio and average collection period. (Round receivables turnover to 1 decimal place, eg. 5.2. Round average collection period to nearest whole day, eg. 15.) Receivables turnover ratio 3.5 times Average collection period 104 days