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Prepare the journal entry to record the bad debt expense on December 31,2021, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record estimate of uncollectible accounts) eTextbook and Media List of Accounts CULLUMBER INDUSTRIES Balance Sheet (Partial) Assets Calculate the receivables turnover and collection period. (Remember that this is the end of the first year of business) (Round answers to 1 decimal place, eg. 52.7. Use 365 days for calculation.) Receivables turnover times Average collection period days eTextbook and Media List of Accounts

Prepare the journal entry to record the bad debt expense on December 31,2021, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record estimate of uncollectible accounts) eTextbook and Media List of Accounts CULLUMBER INDUSTRIES Balance Sheet (Partial) Assets Calculate the receivables turnover and collection period. (Remember that this is the end of the first year of business) (Round answers to 1 decimal place, eg. 52.7. Use 365 days for calculation.) Receivables turnover times Average collection period days eTextbook and Media List of Accounts

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare the journal entry to record the bad debt expense on December 31, 2021, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record estimate of uncollectible accounts) eTextbook and Media List of Accounts CULLUMBER INDUSTRIES Balance Sheet (Partial) Assets Calculate the receivables turnover and collection period. (Remember that this is the end of the first year of business) (Round answers to 1 decimal place, eg. 52.7. Use 365 days for calculation.) Receivables turnover times Average collection period days eTextbook and Media List of Accounts
Transcribed Image Text:Prepare the journal entry to record the bad debt expense on December 31, 2021, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record estimate of uncollectible accounts) eTextbook and Media List of Accounts CULLUMBER INDUSTRIES Balance Sheet (Partial) Assets Calculate the receivables turnover and collection period. (Remember that this is the end of the first year of business) (Round answers to 1 decimal place, eg. 52.7. Use 365 days for calculation.) Receivables turnover times Average collection period days eTextbook and Media List of Accounts
At December 31, 2021, Cullumber Industries reports the following selected accounts from the unadjusted trial batance for its first year of operations: Account Debit Credit Accounts receivable $868,000 Accounts payabler $434.000 Cash 49.600 Cost of goods sold 2,170,000 Interest receivable 1,400 2.800 Interest revenue Merchandise inventory 403.000 Notes receivable, due April 10, 2022 55,800 9,920 Prepaid insurance 65,000 Refund liability 62.000 Short-term investments 3,205.400 Sales 124,000 Sales returns and allowances 31000 Unearned revenue
Transcribed Image Text:At December 31, 2021, Cullumber Industries reports the following selected accounts from the unadjusted trial batance for its first year of operations: Account Debit Credit Accounts receivable $868,000 Accounts payabler $434.000 Cash 49.600 Cost of goods sold 2,170,000 Interest receivable 1,400 2.800 Interest revenue Merchandise inventory 403.000 Notes receivable, due April 10, 2022 55,800 9,920 Prepaid insurance 65,000 Refund liability 62.000 Short-term investments 3,205.400 Sales 124,000 Sales returns and allowances 31000 Unearned revenue
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