Question

View Policies Show Attempt History Current Attempt in Progress At December 31, 2021. Wildhorse Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $563,000 39,000 During 2022, the company had the following transactions related to receivables. 1. 2. 3. Sales on account Sales returns and allowances Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible Recovery of bad debts previously written off as uncollectible $2,470,000 52,000 2,170,000 45,000 15,000 4. 5.

Answer 1

1 No. Debit Credit Account Ti He and explanation Account Receivable Sales Revenue $ 2470000 $2470000 5 2. 9 3. $ 45000 $52000 Sales Return and allowances $52000 Account Receivable Cash # 2170000 Account Receivable $ 2170000 Allowance for doubt feel accounts Account Receivable $ 45000 Account Receivable $ 15000 Allowance for doubtful accounts $15000 {to reinstate account Previaesly). written off Cash $ 15000 Account Receivable (то (To record Collection of account Previously written off recevable) 5. $ 15000 2. Bal Bego Accounts Receivable $ 563000 12) $2470000 (3) $ 15000 14) (6) (5) $ 52000 $ 2170 000 $45000 $ 15000 End Bal. $766000 $3048000 $3048000 Allowances for Doubtful Accounts 4 14) |$45000 Beg. Bal $39000 Endo Balo $ 9ooo (5) $ 15000 $ 54000 $ 54000

3. assuming that aging Journal en try to record bod debt ex pense for 2012 the accents receivable indicates that estimates $ 50000 : Debit Account Title and E Explanation bad debts are Credit $ 41000 Bad debt Expense dit Allowance for boel debts Doubtful Accounts $41000 Explanation : Computation of adjustment amount is Adjustment amount = Balance required for Bod debts - Amount before Adjustment = $50000 - $9ooo $ 41000 Hence, Adjustment amount is $41000, 4. Como Accounts receivable turnover 3.9 times. Explanation: is calculation of Net soles Revenue : Net sales Revenue to tel Sales Revenue - Sales return and allowance $ 24 70 000 - $ 52000 Net sales revenue - $ 2413000 Calculation of Beginning accounts receivable Accounts Receivable = Total Accounts Receivable - Allowance for doubtful Accounts. Beginning $ 563000 - $39000 = $ 524000 Hence, Beginning Accounts Receivable is $ 524000

Bad debts wiu) acii) Calculation of Ending Accounts receivable : Ending Accounts receivable - Totul Accounts - Receivable ko = $ 766000 – $ 50 000 = $ Habove 76000, Calculation of avevage accounts acounts receivable Accounts + Ending Accounts Receivable Receivable vi breget vil 2 to borci ($ $24000 + $ 716000) $ 1240000 Tewasa Accounts receivable : $/240 000 $620000 receivable Aveyage Beginning 2 Average Accounts receivable tumover sales Revenue 1 A verirge Account Receivable in ons 3.9 times $ 2418000 $620000 dove Average collection Period 93.5 days insitamos Average collection period = Number of days annually Accounts receivable tumovey 365 days so we 3.9 93.589 Average Collection Period = 93.5 days collection