At december 31, 2016, house co. reported the following information on its balance sheet.
accounts receivable $960,000
less: allowance for doubtful accounts 80,000

during 2017, the company had the following transactions related to receivables.
1. sales on account $3,700,000
2. sales returns and allowances 50,000
3. collections of accounts receivable 2,810,000
4. write-offs of accounts receivable deemed uncollectible 90,000
5. recovery of bad debts previously written off as uncollectible 29,000

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 accounts, post the entries to the two accounts (use t-accounts), and determine the balances.
accounts receivable $1,710,000
ada $19,000

(c) prepare the journal entry to record bad debt expense for 2017, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000.
bad debt expense $96,000

(d) compute the accounts receivable turnover for 2017 assuming the expected bad debt information provided in (c).

a. The Journal Entries to record the five transactions in the books of House Co. are as follows:

Journal Entries:

1. Debit Accounts Receivable $3,700,000

Credit Sales Revenue $3,700,000

2. Debit Sales returns and allowances $50,000

Credit Accounts Receivable $50,000

3. Debit Cash $2,810,000

Credit Accounts Receivable $2,810,000

4. Debit Allowance for Doubtful Accounts $90,000

Credit Accounts Receivable $90,000

5. Debit Accounts Receivable $29,000

Credit Allowance for Doubtful Accounts $29,000

Debit Cash $29,000

Credit Accounts Receivable $29,000

b) T-accounts:

Accounts receivable

Description                            Debit      Credit

Beginning balance        $960,000

1. Sales Revenue           3,700,000

2. Sales returns and allowances        $50,000

3. Cash                                               2,810,000

4. Allowance for Doubtful Accounts    90,000

5. Accounts Receivable     29,000

Cash                                                       29,000

Ending balance                               $1,710,000

Allowance for doubtful accounts

Description                            Debit      Credit

Beginning balance                               $80,000

4. Accounts Receivable    $90,000

5. Accounts Receivable                         29,000

Bad Debts Expenses                             96,000

Ending balance               $115,000

c. The journal entry to record the bad debt expense for the year, using the expected bad debts of $115,000 and Bad Debts expenses of $96,000 is as follows:

Adjusting Journal Entry:

Debit Bad Debt Expense $96,000

Credit Allowance for Doubtful Accounts $96,000

d. Accounts Receivable Turnover for 2017 is 2.95 times.

Accounts receivable turnover = Net Sales/Average Receivables

= $3,650,000/$1,237,500

= 2.95 times

Data Analysis:

Beginning balances:

Accounts receivable = $960,000

Allowance for doubtful accounts = $80,000

1. Accounts Receivable $3,700,000 Sales Revenue $3,700,000

2. Sales returns and allowances $50,000 Accounts Receivable $50,000

3. Cash $2,810,000 Accounts Receivable $2,810,000

4. Allowance for Doubtful Accounts $90,000 Accounts Receivable $90,000

5. Accounts Receivable $29,000 Allowance for Doubtful Accounts $29,000

Cash $29,000 Accounts Receivable $29,000

Adjustments:

Bad Debt Expense $96,000 Allowance for Doubtful Accounts $96,000

Accounts receivable turnover = Net Sales/Average Receivables

= $3,650,000/$1,237,500

= 2.95 times

Average Receivables = $1,237,500 ($880,000 + $1,595,000)/2

Net Sales for 2017 = $3,650,000 ($3,700,000 - $50,000)

Learn more: link

Explanation:

a. The journal entries are presented below:

1. Account receivable A/c Dr $3,700,000

                          To Sales revenue $3,700,000

(Being the goods are sold on credit)

2. Sales return and allowance A/c Dr $50,000

              To Accounts receivable $50,000

(Being sales return is recorded)

3. Cash A/c Dr $2,810,000

                     To Accounts receivable $2,810,000

(Being cash is received)

4. Allowance for Doubtful Accounts A/c Dr $90,000

                To Account receivable A/c $90,000

(Being written off amount is recorded)

5. Accounts Receivable Dr A/c Dr $29,000

            To Allowance for Doubtful Accounts A/c $29,000

(Being uncollected amount is recorded)

Cash A/c Dr $29,000

       To Accounts Receivable  A/c Dr $29,000

(Being recovery of bad debt is recorded)

b. The T-Accounts are shown below:

                                       Account receivable

Opening balance $960,000                 Sales returns $50,000

Sales                      $3,700,000              Collection      $28,10,000

Uncollectible         $29,000                    Written off     $90,000

                                                                 Collection     $29,000

Ending balance    $17,10,0000

                                    Allowance for Doubtful Debts

Written off         $90,000            Beginning balance  $80,000

                                                    UnCollectible           $29,00

                                                   Ending balance         $19,000

c. Bad debt expense A/c Dr  $96,000     ($115,000 - $19,000)

          To Allowance for doubtful debts $96,000

(Being bad debt expense is recorded)  

d. The computation of the accounts receivable turnover ratio is given below:

Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable  

where,  

Net credit sales is $960,000 $3,700,000

And, the Average accounts receivable would be

= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2

= ( $880,000 + $1,595,000) ÷ 2

= $1,237,500

The Accounts receivable, beginning of year would be

= $960,000 - $80,000

= $880,000

The Accounts receivable, ending of year would be

= $1,710,000 - $115000

= $1,595,000

So, the accounts receivable turnover ratio would be

= $3,700,000 ÷ $1,237,500

= 2.99 times

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

i know right it’s not fair some people are just so rude unlike you your actually trying to get to know people and i think that is very kind