Prepe PS-1A At December 31, 2016, Cafu SA reported the following information on its state- ment of financial position. to be Accounts receivable (LO R$960,000 Less: Allowance for doubtful accounts 66,000 During 2017, the company had the following transactions related to receivables. 1. Sales on account R$3,315,000 2. Sales returns and allowances 50,000 3. Collections of accounts receivable 2,810,000 4. Write-offs of accounts receivable deemed uncollectible 88,000 5. Recovery of bad debts previously written off as uncollectible 29,000 Instructions (a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (6) Enter the January 1, 2017, balances in Accounts Receivable and Allowance for Doubt- ful Accounts, post the entries to the two accounts (use T-accounts), and determine the balances. (c) Prepare the journal entry to record bad debt expense for 2017, assuming that an aging of accounts receivable indicates that expected bad debts are R$125,000. (d) Compute the accounts receivable turnover for 2017, assuming the expected bad debt information presented in (c). P8-5A At December 31, 2017, the trial balance of Roberto SpA contained the following amounts before adjustment. Debit 385,000 Credit Accounts Receivable Allowance for Doubtful Accounts Sales Revenue 800 918,000 Instructions (a) Based on the information given, which method of accounting for bad debts is Roberto using-the direct write-off method or the allowance method? How can you tell? (b) Prepare the adjusting entry at December 31, 2017, for bad debt expense under each of the following independent assumptions. (1) An aging schedule indicates that 12,400 of accounts receivable will be uncollectible. (2) The company estimates that 1% of sales will be uncollectible. (c) Repeat part (b) assuming that instead of a credit balance there is an 960 debit balance in Allowance for Doubtful Accounts. (d) During the next month, January 2018, a 3,000 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. (e) Repeat part (d) assuming that Roberto uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable. What type of account is Allowance for Doubtful Accounts? How does it affect how accounts receivable is reported on the statement of financial position at the end of the accounting period