receiveable topic

CHAPTER 9 PROBLEMS: SET B P9-18 At December 31, 2013, Obermeyer Imports reported the following information on Prepare journal its balance sheet. to bad debt exp Accounts receivable $250,000 (LO 2, 3, 9), AN Less: Allowance for doubtful accounts 15,000 During 2014, the company had the following transactions related to receivables. 1. Sales on account $2,600,000 2. Sales returns and allowances 45,000 3. Collections of accounts receivable 2,250,000 4. Write-offs of accounts receivable deemed uncollectible 10,000 5. Recovery of bad debts previously written off as uncollectible 3,000 Instructions (a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (b) Enter the January 1, 2017, balances in Accounts Receivable and Allowance for Doubtful (b) Accounts r Accounts. Post the entries to the two accounts (use T-accounts), and determine the $545,000 balances. ADA $8,00 (c) Prepare the journal entry to record bad debt expense for 2017, assuming that an aging (c) Bad debt ex of accounts receivable indicates that estimated bad debts are $22,000. $14,000 (d) Compute the accounts receivable turnover for the year 2017