Question: Using transactions listed in E6-5, indicate the effects of each transaction on the liquidity metric days' sales in receivables and profitability metric return on sales.

Using transactions listed in E6-5, indicate the effects of each transaction on the liquidity metric days' sales in receivables and profitability metric return on sales.

E65

Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Kitchen Depot Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:

July 3

Received $2,500 on an account and wrote off the remainder owed of $11,000 as uncollectible.

Oct. 8

Reinstated the account that had been written off on July 3 and received $11,000 cash in full payment.

PLEASE PROVIDED CITED REFERENCES AND CITATIONS!!!!!

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