69
Chapter 2
Accounting for Receivables
b) Prepare the journal entry to record bad debt expense for the year.
Date
Account Title and Explanation
Debit
Credit
AP-14B (
2
)
On January 1, 2016, Jay Company’s allowance for doubtful accounts had a credit balance of
$30,000. During 2016, Jay charged $64,000 to bad debt expense, and wrote off $46,000 of
uncollectible accounts receivable. What is the balance of allowance for doubtful accounts on
December 31, 2016?
AP-15B (
5
)
A company’s relevant accounts receivable information for years 2015 and 2016 is provided
below.
2016
2015
Average Net Accounts Receivable
$1,486,739
$1,769,032
Net Credit Sales
23,075,635
22,107,539
Required
a) Calculate the accounts receivable turnover ratio for 2015 and 2016.
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