At December 31, 2021, Cullumber Imports reported this information on its balance sheet. Accounts receivable...
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At December 31, 2021, Cullumber Imports reported this information on its balance sheet. Accounts receivable $525,000 Less: Allowance for doubtful accounts 34,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account $2,510,000 2. Sales returns and allowances 53,000 3. Collections of accounts receivable 2,210,000 4. Write-offs of accounts receivable deemed uncollectible 44,000 5. Recovery of bad debts previously written off as uncollectible 17,000 Compute the accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.4.) Accounts receivable turnover times (c) Your answer is correct. Prepare the journal entry to record bad debt expense for 2022, assuming that aging the accounts receivable indicates that estimated bad debts are $49,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Bad Debt Expense 42000 Allowance for Doubtful Accounts 42000
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