Question

Problem 8-1A (Part Level Submission) At December 31, 2018, Concord Corporation reported the following information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $942,000 76,000 During 2019, 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 $3,629,860 46,000 2,760,000 93,000 29,000 (a) Your answer is correct. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No Account Titles and Explanation Debit Credit 1. Accounts Receivable Sales Revenue 3629860 2. Sales Returns and Allowances 46000

Answer 1

Hi,

Part C information required to solve Part D , Please Give the information relating to Expected BAD debts.

I will solve in 2min.

Beginning accounts receivable, net = $942000 - $76000 = $866,000

Ending Accounts Receivable, Net = $1672860 - Expected Bad debts = $1,595,000

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

Accounts receivable turnover ratio = Credit sales / Average accounts receivable = $3,629,8600 / $ = times