During the current yoar, Sun Electronics,Incorporated, Required: Prepare journal

Question

During the current yoar, Sun Electronics,Incorporated, Required: Prepare journal entries for each transaction: (If no entry is required for a transaction/event.select "No Journal entry required" in the first account fleld.) a. On November 13 of the current year, an account receivable for $290 from a prior year was determined to be uncollectible and was writen off b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year. recorded credit sales of $790,000. Based on prior experience, it estimates a 1 percent bad debt rate on credit sales View transaction list Journal entry worksheet Record the entry to write-off the uncollectible account. Note: Enter debits before credits Debit Credit Transa View general journal Record entry Clear entry ReferenceseBook & Resources Difficuty: 1 Essy General Journal

Explanation / Answer

1 Date General Journal Debit Credit (a) Allowance for doubtful accounts $290 Accounts receivable $290 (b) Bad debt expense $7,900 Allowance for doubtful accounts $7,900 ($790,000 x 1%) 2 Receivable Turnover Ratio Numerator Net Credit Sales $35,297,000 8.77 Denominator Average Accounts Receivable (net) $4,025,500 Average days sales in receivables Numerator 365 365 41.62 Days Denominator Receivables Turnover 8.77 Average Accounts Receivable (net) ($4,566,000 + $3,485,000) ÷ 2

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