Question 4 0.88/2 View Policies Show Attempt History Current Attempt in Progress At December 31, 2021, Ivanhoe Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $650,000 40,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible $2,880,000 56,000 2,580,000 43,000 15,000 Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Credit Debit 2 ,880,000 1. Accounts Receivable C Sales Revenue 2,880,000 2. Sales Returns and Allowances 56,000 Accounts Receivable C 56,000 3. Cash Accounts Receivable Sales Revenue Sales Returns and Allowances Accounts Receivable Cash Accounts Receivable Allowance for Doubtful counts Accounts Receivable Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable D 2,580,000 2.590.000 56,000 D 2,580,000 C 43000 D 1 5,000 C 4. 4. Allowance for Doubtful Accounts 43,000 Accounts Receivable C 43,000 43,000 5. Accounts Receivable C 15,000 Allowance for Doubtful Accounts D 1 5,000 (To reinstate account previously written off) Cash | 15,000 | ] O 15000 D | 15 ,000 Accounts Receivable 15,000 Enter the January 1, 2022, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances. (Post entries in the order of journal entries posted in the previous part) Accounts Receivable Bal. 9 650,000 4 (2) 5 6,000 2,880,000 4 (3) 2 ,580,000 15,000 4 (4) 4 3,000 (5) = 15,000 Bal . 3545000 Bal. S 2694000 Allowance for Doubtful Accounts 43,000 40,000 Bal. 41 (5) 4 1 5,000 Bal. = 21,000 Prepare the journal entry to record bad debt expense for 2022, assuming that aging the accounts receivable indicates that estimated bad debts are $49,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts 49,000 Accounts Receivable N 49,000 Compute the accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.4.) Accounts receivable turnover times times eTextbook and Media List of Accounts Compute the average collection period. (Round answer to 1 decimal place, e.g. 12.4. Use 365 days for calculation.) Average collection period days e Textbook and Media List of Accounts
