On September 30, 2016 (the end of its fiscal year), Lufkin Corporation reported accounts receivable of $331,750 and an allowance for doubtful accounts of $16,700. During fiscal 2017, the following transactions occurred:
Credit sales (terms, n/EOM) ............$2,017,800
Collections on accounts receivable ........ 1,956,000
Accounts receivable written off .......... 16,200
On September 30, 2017, an aging of the accounts receivable balance indicated the following:

Required:
1. Prepare the journal entries necessary to record the credit sales, collections on account, write-off of accounts receivable, and bad debts expense for Lufkin for fiscal 2017.
2. What are Lufkin€™s September 30, 2017, balances in Accounts Receivable and in its Allowance for Doubtful Accounts, and how will they be disclosed on the September 30, 2017, balance sheet?
3. Compute Lufkin€™s receivables turnover in days, assuming a 365-day business year. What is your evaluation of its collection policies?

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Amount Estimated Percentage Uncollectible Age 0.8% Under 30 days 30-90 days 91-180 days 181-360 days $169,250 100,000 55,900 38,200 14,000 5.0 15.0 40.0 Over 360 days3377.350