Question

a. Compute and HJ. Heinz Comp Does The Limited Brands agge b. accounts receivable tumover ratio? Explain the logic underlying your answer in (b). C. olems Series A The following transactions were completed by Axiom Management Company during the Entries related to unco llectible accounts PR 9-1A current fiscal year ended December 31: 17. Received 25% of the $30,000 balance owed by Gillespie Co., a ness, and wrote off the remainder as uncollectible. Feb. bankrupt busi- Apr. 11. Reinstated the account of Colleen Bertram, which had been written off in the preceding year as uncollectible. Journalized the receipt of $4,250 cash in fl payment of Colleen's account. July 6. Wrote off the $9,000 balance owed by Covered Wagon Co., which has no assets

Answer 1

Required journal entries are as follows:

1.) Bank A/c Dr. 7,500

Bad-debt A/c Dr. 22,500

To Gillespie co. 30,000

2.) Cash A/c Dr. 4250

To Bad-debt written back 4250

(Being amount which was written off now gets written back )

3.) Nov 20

Cash A/c Dr. 5,000

To Bad debt written back 5,000

4.) 31st Dec

Bad-debt A/c Dr. 21,700

To Kipp 3000

To Moore co. 4,000

To Butte Distributors 8,000

To Parker Tower 6,700

5) Bad debt A/c Dr. 60,000

To account receivables 60,000