Brief Exercise 8-10 (Part Level Submission)

During its first year of operations, Pearl Industries had credit sales of $2,877,900, of which $440,000remained uncollected at year-end. The credit manager estimates that $18,910of these receivables will become uncollectible.

(a)

Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.)(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

(b)

Prepare the current assets section of the balance sheet for Pearl Industries, assuming that in addition to the receivables it has cash of $85,660, merchandise inventory of $176,030, and supplies of $12,380.(List current assets in order of liquidity)

(c1)

Calculate the accounts receivable turnover. Assume that average net accounts receivable were $304,900.(Round answers to 1 decimal place, e.g. 12.5.)

Accounts receivable turnover ratio

times

(c2)

Calculate the average collection period.(Round answers to 1 decimal place, e.g. 12.5.)

Average collection perioddays