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Problem 1 - Given the following information, compute accounts receivable turnover: (Please round your answer to the 2nd decimal place.)
Gross sales $150,000 Accounts receivable, beginning of year $18,000
Sales 135,000 Accounts receivable, end of year 22,000
Problem 2 - At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000. Determine the amount of the adjusting entry for bad debt expense.
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