Acc280 Financial Accounting:  P9-1A At December 31, 2007, Leis Co. reported the following

Acc280 Financial Accounting: P9-1A At December 31, 2007, Leis Co. reported the following

Acc280 Financial Accounting

P9-1A
At December 31, 2007, Leis Co. reported the following information on its balance sheet.
Accounts receivable 960,000
Less: Allowance for doubtful accounts 80,000
During 2008, the company had the following transactions related to receivables.
1. Sales on account 3,200,000
2. Sales returns and allowances 50,000
3. Collections of accounts receivable 2,810,000
4. Write-offs of accounts receivable deemed uncollectible 90,000
5. Recovery of bad debts previously written off as uncollectible 24,000

Instructions:
1. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.
2. Enter the January 1, 2008, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances. (Enter the amounts in the same order as the transactions above.)
3. Prepare the journal entry to record bad debts expense for 2008, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000.
4. Compute the accounts receivable turnover ratio for 2008. (Round answer to 2 decimal places, e.g. 10.50.)
Acc280 Financial Accounting: P9-1A At December 31, 2007, Leis Co. reported the following
.XLS file (21.5KB)
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