Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 8-1A At December 31, 2018, Tamarisk, Inc. reported the following information on its balance sheet. Accounts receivable $967,000 Less: Allowance for doubtful accounts 75,000

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 8-1A At December 31, 2018, Tamarisk, Inc. reported the following information on its balance sheet. Accounts receivable $967,000 Less: Allowance for doubtful accounts 75,000 During 2019, the company had the following transactions related to receivables. 1. Sales on account $3,951,880 2. Sales returns and allowances 55,000 2,820,000 3. Collections of accounts recejvable 95,000 4. Write-offs of accounts receivable deemed uncollectible 28,000 5. Recovery of bad debts previously written off as uncollectible Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit Debit No Account Titles and Explanation 1. 2. No Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. (To reverse account previously written off.) (To record the collection of accounts receivable.) Enter the January 1, 2019, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T-accounts), determine the balances. (Post entries in the order of journal entries presented in the previous part.) Accounts Receivable Allowance for Doubtful Accounts accumina that an aging of accounts receivable indicates that expected bad debts are Prepare the journal entry to record bad debt expense for 2019, assuming that an aging of accounts receivable indicates that expected bad debts are $342,880. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation I Debit Credit Compute the accounts receivable turnover for 2019, assuming the expected bad debt information provided in (c). (Round answer to 2 decimal places, e.g. 25.25.) Accounts receivable turnover ratio times Open Show Work Click if you would like to Show Work for this

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IRS Audit Protection And Survival Guide Trucking Industry

Authors: Daniel J. Baran, Gerald F. Bernard, James E. Brown

1st Edition

0471166413, 978-0471166412

More Books

Students also viewed these Accounting questions