Problem 8-02A

At December 31, 2021, Crane Imports reported this information on its balance sheet.

Accounts receivable		$602,000
Less: Allowance for doubtful accounts		41,000

During 2022, the company had the following transactions related to receivables.

1.		Sales on account		$2,560,000
2.		Sales returns and allowances		52,000
3.		Collections of accounts receivable		2,260,000
4.		Write-offs of accounts receivable deemed uncollectible		43,000
5.		Recovery of bad debts previously written off as uncollectible		20,000

Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Omit cost of goods sold entries.)

Enter the January 1, 2022, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances.

Prepare the journal entry to record bad debt expense for 2022, assuming that aging the accounts receivable indicates that estimated bad debts are $48,000.

Compute the accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.4.)

Accounts receivable turnover

enter the accounts receivable turnover in times rounded to 1 decimal place

times

Compute the average collection period. (Round answer to 1 decimal place, e.g. 12.4. Use 365 days for calculation.)

Average collection period

enter the average collection period in days rounded to 1 decimal place

days

AC 31, 2021, ane imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $602,000 41,000 During 2022, the company had the following transactions related to receivables. 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 $2,560,000 52,000 2,260,000 43,000 20,000 Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Na Tute and ti 2. 3 5. To red collection of accounts rese) SHOW LIST OF ACCOUNTS Enter the January 1, 2022, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances. (Post entries in the order of journal entries posted in the previous part) Acest Rechable Enter the January 1, 2022, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances. (Post entries in the order of journal entries posted in the previous part) Accounts Recehalle Allowance for Doubtful Acos SHOW LIST OF ACCOUNTS Prepare the journal entry to record bad debt expense for 2022, assuming that aging the accounts receivable indicates that estimated bad debts are $48,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Accounts and plante Credi SHOW LIST OF ACCOUNTS Compute the accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.4.) Accounts receivable turnover times SHOW LIST OF ACCOUNTS Compute the average collection period. (Round answer to 1 decimal place, e.g. 12.4. Use 365 days for calculation.) Average collection period days Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS