At December 31, 1996, Bordeaux Inc. reported the following information on its balance sheet.

During 1997, the company had the following transactions related to receivables.

\section*{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.

(b) Enter the January 1, 1997, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances.

(c) Prepare the journal entry to record bad debts expense for 1997, assuming that an aging of accounts receivable indicates that expected bad debts are \(\$ 100,000\).

(d) Compute the accounts receivable turnover ratio for 1997.

Transcribed Image Text:

Accounts Receivable $960,000 Less: Allowance for doubtful accounts 70,000