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Question 2 (5 points) Dorchester Company had the following balances at the end of 2018 and 2019 respectively: Net Credit Sales - $950,000 for 2018 and $1,000,000 for 2019. Accounts Receivable - $100,000 for 2018 and $109.000 for 2019. Allowance for Doubtful Accounts - $6,000 for 2018 and 6,500 for 2019 Calculate the accounts receivable turnover ratio to one decimal place. Your Answer: Question 9 (5 points) Match each description to the appropriate term (a-i). A contra asset that represents the amount of estimated uncollectible receivables A list of customer accounts sorted by age classes 1. Accounts receivable turnover 2. Net realizable value Operating expense recorded as a result of receivables becoming uncollectible 3. Accounts receivable The difference between accounts receivable and allowance for doubtful accounts 4. Asing report Term for selling receivables 5. Receivables 6. Records bad debt expense only when a specific customer's account is deemed worthless Direct write-off method 7. Allowance for doubtfal accounts A receivable created from selling merchandise or services on account 8. Bad debt expense v Measures how frequently during the year accounts receivables are being turned into cash 9. Factoring All money claims against other entities Question 10 (5 points) Match each description to the appropriate term (a-d). Each term may be used more than once. With this method, there is no allowance account This method is based on the theory that older accounts are less likely to be collected > This method focuses on the balance sheet 1. Direct write-off method This method is most often used by small companies with few receivables 2. Aging of receivables method 3. Percent of sales method > Offers two methods of estimating uncollectible accounts. 4 Allowance method This method focuses on the income statement When using this method, estimated bad debts are added to the existing allowance balance This method records bad debts when specific accounts are deemed uncollectible

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