At December 31, 2018, House Co. reported the following information on its balance sheet.

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

Prepare the Journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Enter the January 1, 2019, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T-accounts), and determine the balances. (Post entries in the order of journal entries presented in the previous part.)

Prepare the journal entry to record bad debt expense for 2019, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Compute the accounts receivable turnover for 2019, assuming the expected bad debt information provided in (c). (Round answer to 2 decimal places, e, g, 25, 25.)

Transcribed Image Text:

Accounts receivable Less: Allowance for doubtful accounts $960,000 80,000 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible $3,700,000 50,000 2,810,000 90,000 29,000 No Account Titles and Explanation 1. 2. 3. 5. (To reverse account previously written off.) (To record the collection of accounts receivable.) Debit ▬▬▬▬▬▬▬▬ Credit Accounts Receivable Allowance for Doubtful Accounts Account Titles and Explanation Debit Credit Accounts receivable Less: Allowance for doubtful accounts $960,000 80,000 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible $3,700,000 50,000 2,810,000 90,000 29,000 No Account Titles and Explanation 1. 2. 3. 5. (To reverse account previously written off.) (To record the collection of accounts receivable.) Debit ▬▬▬▬▬▬▬▬ Credit Accounts Receivable Allowance for Doubtful Accounts Account Titles and Explanation Debit Credit

Answer rating: 100% (QA)

Solution 1 Journal Entries House Co Sno Particulars Debit Credit 1 Accounts Receivable Dr 3700000 To ... View the full answer