ou are a new supervisory accountant at Sportsman Company, reporting to the controller. On your second day with Sportsman, a junior accountant quit his job with no notice.

One day later, it is time to prepare closing entries for March. The controller has asked you to review and correct, if necessary, the general ledger account for accounts receivable (A/R) prepared by the junior accountant. You have been provided with access to the same materials and information pertaining to the A/R subsidiary ledger (subledger) that junior accountant had in preparing the general ledger balance. You were also informed that the March A/R beginning balance of $489,300 balanced with the A/R subledger as of March 1, Year 6.

Review the general ledger account for accounts receivable prepared by the junior accountant to ensure it is accurate and consistent with the information and documents provided.

\begin{tabular}{|c|l|c|c|c|c|} \hline \multicolumn{2}{|l|}{ Account: Accounts Receivable } & & \multicolumn{2}{c|}{ Account Number: 120} \\ \hline \multicolumn{1}{|c|}{ Date } & \multicolumn{1}{|c|}{ Description } & Post Ref. & Debit & Credit & Balance \\ \hline 3/1/ Year 6 & Beginning balance & & & & 489,300 \\ \hline 3/22/ Year 6 & Sales return & & & 1,200 & 488,100 \\ \hline 3/25/ Year 6 & Write-off officer loan & & & 12,500 & 475,600 \\ \hline 3/29/ Year 6 & Assignment & & & 17,000 & 458,600 \\ \hline 3/29/ Year 6 & Write-off customer accounts & & 25,600 & & 484,200 \\ \hline 3/29/ Year 6 & Recovery & & & 14,000 & 470,200 \\ \hline 3/31/ Year 6 & March sales & & 636,250 & & 1,106,450 \\ \hline 3/31/ Year 6 & March collections & & & 314,800 & 791,650 \\ \hline \end{tabular} I was told that the sales returus were all on credit sales J A. \begin{tabular}{|lc|} \hline \multicolumn{2}{|c|}{ Sportsman Company } \\ \hline \multicolumn{2}{|c|}{ Cash Receipts Report - March, Year 6 } \\ \hline Cash sales & $360,850 \\ \hline Collections on credit sales & $314,800 \\ \hline Total cash receipts & $675,650 \\ \hline \end{tabular} To: Junior Accountant From: Zach Barnes, Accounts Receivable Clerk Re: Assignment of Accounts Receivable Date: March 29, Year 6 Per instructions of the controller, we have finalized the assignment of the following accounts receivables and made the required adjustments to the subsidiary accounts receivable ledger: 3/29/ Year 6: Transferred accounts receivable with a net realization value of $20,000 for $17,000 to Fastcash Finance Company. Fastcash withheld $2,000 from the proceeds for projected future reductions. We have surrendered control of these receivables. - Zach Subject: Inventory questions Hello junior accountant: Per your question regarding customer write-offs, our policy is to write off accounts receivable when the account is placed in collection. We would rather do that than carry an inflated A/R balance and see our Days Sales Outstanding numbers suffer. In other words, it keeps the A/R balance clean and meaningful. We can always recover accounts that do end up getting collected. For your reference, that's just one approach. Other companies might wait until they actually receive written notice from the collection agency that an account proves uncollectible, or until the customer files for bankruptcy, or the company's lawyers advise of a possible write-off situation, or what have you. There is the argument that, if you're too quick to write off an account, it goes 'out of sight out of mind' and the company has less pressure to either collect on that account or ensure new customers are creditworthy. Anyway, since the weekend is upon us, I can tell you that for March accounts placed into collection totaled $25,600 and recoveries totaled $14,000. The latter is just for one account where the customer called and promised they're going to pay and assured us they will pay very soon. We believe them, so we consider it a recovery, but we haven't actually collected on the account yet. We're not going to tell you to write off or recover any accounts on Saturday or Sunday, haha. Enjoy your weekend! McKenzie [Replace with] The 22 March sales return entry should be a debit entry of $14,000. [Replace with] The 22 March sales return entry should be a credit entry of $14,000. [Replace with] The 22 March sales return entry should be a debit entry of $12,000. [Replace with] The 22 March sales return entry should be a credit entry of $12,000. [Replace with] The 22 March sales return entry should be removed. Highlight \#2 The 25 March officer loan write-off credit entry of $12,500 is correct. [Original text] The 25 March officer loan write-off credit entry of $12,500 is correct. [Delete text] [Replace with] The 25 March officer loan write-off should be a debit entry of $12,500. [Replace with] The 25 March officer loan write-off should be dated 22 March. [Replace with] The 25 March officer loan write-off should be removed because the loan should be turned over to a collection agency before being deemed uncollectible. Highlight \#3 The 29 March assignment credit entry of $17,000 is correct. Choose an option [Original text] The 29 March assignment credit entry of $17,000 is correct. [Delete text] [Replace with] The 29 March assignment entry should be a debit entry of $17,000. [Replace with] The 29 March assignment entry should be a credit entry of $18,000. [Replace with] The 29 March assignment entry should be a debit entry of $18,000. [Replace with] The 29 March assignment entry should be a credit entry of $20,000. Highlight \#4 The 29 March customer account write-off debit entry of $25,600 is correct. t [Original text] The 29 March customer account write-off debit entry of $25,600 is correct. [Delete text] [Replace with] The 29 March customer account write-off entry should be a credit entry of $25,600. [Replace with] The 29 March customer account write-off entry should be a debit entry of $14,000. [Replace with] The 29 March customer account write-off entry should be a credit entry of $14,000. Highlight \#5 The 29 March customer account recovery credit entry of $14,000 is correct. [Delete text] [Replace with] The 29 March customer account recovery entry should be a debit entry of $14,000. [Replace with] The 29 March customer account recovery entry should be a credit entry of $25,600. [Replace with] The 29 March customer account recovery entry should be a debit entry of $25,600. [Replace with] The 29 March customer account recovery entry should be removed until the customer beqins paying on the account. Highlight \#6 The 31 March credit sales debit entry of $636,250 is correct. [Original text] The 31 March credit sales debit entry of $636,250 is correct. [Delete text] [Replace with] The 31 March credit sales entry should be a credit entry of $636,250. [Replace with] The 31 March credit sales entry should be a debit entry of $275,400. [Replace with] The 31 March credit sales entry should be a debit entry of $263,400. Highlight \#7 The 31 March credit sales credit entry of $314,800 is correct. Choose an option 11:. ohtifind lexis ine 31 Warcil creull sales creull entry ol \$514,800 is correct. [Delete text] [Replace with] The 31 March credit sales entry should be a debit entry of $314,800. [Replace with] The 31 March credit sales entry should be a credit entry of $275,400. [Replace with] The 31 March credit sales entry should be a credit entry of $263,400. [Replace with] The 31 March credit sales entry should be a credit entry of $360,850. Highlight \#8 The March ending balance of $791,650 is correct. [Delete text] [Replace with] The March ending balance should be $406,300. [Replace with] The March ending balance should be $409,300. [Replace with] The March ending balance should be $383,800. [Replace with] The March ending balance should be $392,300