Compute the accounts receivable turnover

Assignment Help Accounting Basics

Reference no: EM131829000

Question: At December 31, 2016, Suisse Imports reported this information on its balance

Accounts receivables $600,000

Less: Allowance for doubtful accounts 37,000

During 2017, the company had the following transactions related to receivables.

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. (Omit cost of goods sold entries.)

(b) Enter the January 1, 2017, 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 debt expense for 2017, assuming that aging the accounts receivable indicates that estimated bad debts are $46,000.

(d) Compute the accounts receivable turnover and average collection period.

Reference no: EM131829000

Questions Cloud

Prepare financial statements annually of the company : On January 1, 2017, Harvee Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $3,700.

What is present value of these payments : Assume that starting next year, you will receive payments of $ 952 every year for 19 years. What is the present value of these payments?

How would the PV and FV of above annuity change : How would the PV and FV of the above annuity change if it were an annuity due rather than an ordinary annuity?

What is a weakness of the direct write-off method : What amount of bad debt expense will Morgane Company report if it uses the direct write-off method of accounting for bad debts?

Compute the accounts receivable turnover : Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.

ERP systems are based on solid set of business processes : “Since ERP systems are based on a solid set of business processes, an ERP implementation often serves as the catalyst for a BPR effort”.

Terms of projected return on the owner equity investment : Compare the two financing options in terms of projected return on the owner’s equity investment. Ignore any effect from income taxes.

Some of the main reasons why erp implementations fail : What are some of the main reasons why ERP implementations fail? how can we asses risk in the organization and planning to counter act it?

What are the advantages of using the allowance method : What are the advantages of using the allowance method in accounting for uncollectible accounts as compared to the direct write-off method?

User Account

All Pages