Suppose the following information was taken from the 2022 financial statements ofFedEx Corporation, a major global transportation/delivery company.

(in millions)

2022

2021

Accounts receivable (gross)$3,780

$4,650

Accounts receivable (net)3,400

4,400

Allowance for doubtful accounts380

250

Sales revenue34,320

36,820

Total current assets7,190

7,262

Answer each of the following questions.

Part 1

Calculate the accounts receivable turnover and the average collection period for 2022 for FedEx.(Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)

Accounts receivable turnoverenter the accounts receivable turnover in times rounded to 1 decimal place

timesThe average collection period for 2022enter the average collection period for 2022 in days rounded to 1 decimal place

days

Oriole Companyuses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end.

(a)

Calculate the total estimated bad debts based on the information below.

Number of Days Outstanding

Total

0-30

31-60

61-90

91-120

Over 120

Accounts receivable$502,000$352,000$83,000$38,000$18,000$11,000% uncollectible1%4%5%9%11%Estimated bad debts$

enter estimated bad debts in dollars

Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $3,600debit.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

enter an account title for the adjusting entry to record the bad debts

enter a debit amount

enter a credit amount

enter an account title for the adjusting entry to record the bad debts

enter a debit amount

enter a credit amount

SWV_P08_01_Part_B

Of the above accounts, $4,600is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

he company collects $4,600subsequently on a specific account that had previously been determined to be uncollectible in part (c). Prepare the journal entries necessary to (1) restore the account and (2) record the cash collection.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.enter an account title to record the first transaction

enter a debit amount

enter a credit amount

enter an account title to record the first transaction

enter a debit amount

enter a credit amount

2.enter an account title to record the second transaction

enter a debit amount

enter a credit amount