Analyzing changes in accounts receivable. Selected data from the financial statements of Kajima Corporation appear next for the years ended March 31, 2004, through March 31, 2007, Kajima applies Japanese accounting standards and reports its results in millions of yen (Ò°). For purposes of this problem, assume that Kajima applies U.S. GAAP or IFRS.

(a) Prepare journal entries for 2005, 2006, and 2007 to record the following:
(1) Revenues.
(2) Recognition of bad debt expense.
(3) Write-off of actual uncollectible accounts.
(4) Collection of cash from customers.
b. Compute the following ratios, combining Accounts and Notes Receivable:
(1) Accounts receivable turnover ratio for 2005, 2006, and 2007. Use total sales in the numerator and average accounts receivable (net) in the denominator.
(2) Had debt expense divided by revenues on account for 2005, 2006, and 2007.
(3) Allowance for uncollectible accounts divided by accounts receivable (gross) at the end of 2005, 2006, and 2007.
(4) Write-offs of actual uncollectible accounts divided by average accounts receivable (gross) for 2005, 2006, and 2007.
c. What do the ratios computed in part b suggest about the collection experience of Kajima Corporation during2005-2007?

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2007 2006 2005 2004 Balance Sheet Accaunts and Notes Receivable, Gross Allowance for Doubtful Accounts.... Income Statement Revenues (assume 100% on credit) Bad Debt Expense.. * 455,517 8,341 ¥ 630,044 ¥ 468,387 10,673 ¥382,692 13,441 5,286 1,891,466 1,775,274 3,152 1,687,380 2,999 1,084