At December 31. 2021. Cullumber Company reported this information on its balance sheet Accounts receivable $588.000 Less Allowance for doubtful accounts 35,000 uring 2022. the company had the following transactions related to receivables Sales on account $2.299.000 Sales returns and allowances 50.000 Collections of accounts receivable 2.115,000 Write-offs of accounts receivable deemed uncollectible 38.000 15.000
At December 31. 2021. Cullumber Company reported this information on its balance sheet Accounts receivable $588.000 Less Allowance for doubtful accounts 35,000 uring 2022. the company had the following transactions related to receivables Sales on account $2.299.000 Sales returns and allowances 50.000 Collections of accounts receivable 2.115,000 Write-offs of accounts receivable deemed uncollectible 38.000 15.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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At December 31, 2021. Cullumber Company reported this information on its balance sheet.
Accounts receivable
$588.000
Less: Allowance for doubtful accounts
35.000
During 2022, the company had the following transactions related to receivables.
1.
Sales on account
$2.299.000
2.
Sales returns and allowances
50.000
3.
Collections of accounts receivable
2.115,000
4.
Write-offs of accounts receivable deemed uncollectible
38,000
5.
Recovery of accounts previously written off as uncollectible
15,000
(a)
ofaccounts.receivable. (Omit cost of goods sold entries) (Credit account titles are automatically indented when amount is
uel litlesand cnter 0for.the
Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections
Transcribed Image Text:Video
List of Accounts
Attempts: 1 of 3 c
(d)
Compute the accounts receivable turnover and average collection period, assuming the expected uncollectibles information
provided in (c). (Round answers to 1 decimal place, e.g. 25.2. Use 365 days for calculation.)
Accounts receivable turnover
times
Average collection period
days
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