Accounts Receivable Beg. bal. Write-offs Allowance for Doubtful Accounts 24,000 14,000 21,000 Bad debt expense Beg. bal. 192,000 Credit sales 640,000 508,000 Collections 24,000 Write-offs Unadj. Bal End. bal. 300,000 End. bal. 11,000 24,000 Bad debt expense 35,000
Jayco Inc. started its operations in 2022. Its sales during 2022, all on account, totalled $700,000. The company collected $500,000 in cash from customers during the year and wrote off $8,000 in uncollectible accounts. The company set up an allowance for doubtful accounts at December 31, 2022, its fiscal year-end, and determined the account balance to be $14,000.
The unadjusted balances of selected accounts at December 31, 2023 are as follows:
| $ | 300,000 | ||
| Allowance for doubtful accounts (debit) | 10,000 | ||
| Sales revenue (including 80 percent in sales on account) | 800,000 | ||
Aging of the accounts receivable on December 31, 2023, resulted in an estimate of $11,000 in potentially uncollectible accounts.
Required:
2. Prepare the journal entries to record all the transactions during 2023 and post them to appropriate T-accounts. (If no entry is required for a transaction/event, select "No
(attachment)
3. Compute the receivables turnover ratio and the average collection period for 2023. (Use 365 days a year. Round "Receivables turnover" to 2 decimal places and other answer to nearest whole number.)
Receivables turnover:
Average collection period:
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