Prepare the journal entry to record bad debts expense

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Reference no: EM132917343

At December 31, 2019, Jeecede Co. reported the following information on its balance sheet.

Accounts receivable $960,000

Less: Allowance for doubtful accounts 80,000

During 2019, the company had the following transactions related to receivables.

1. Sales on account $3,200,000

2. Sales returns and allowances 50,000

3. Collections of accounts receivable 2,810,000

4. Write-offs of accounts receivable deemed uncollectible 90,000

5. Recovery of bad debts previously written off as uncollectible 24,000

Instructions

Problem (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.

Problem (b) Determine the balances in the Accounts receivable and Allowance for doubtful accounts

Problem (c) Prepare the journal entry to record bad debts expense for 2019, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000

Problem (d) Compute the accounts receivable turnover ratio in times for 2019.

Reference no: EM132917343

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