Strayer ACC 557 Week 5, Chapter 8 (E8-3, E8-5, E8-14, P8-7A)
E8-3: The ledger of Elburn Company at the end of the current year shows Accounts Receivable $110,000, Sales Revenue $840,000, and Sales Returns and Allowances $28,000. …………
E8-5: At December 31, 2013, Crawford Company had a balance of $15,000 in Allowance for Doubtful Accounts. During 2014, Crawford wrote off accounts totaling $14,100. One of those accounts ($1,800) was later collected. At December 31, 2014, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $19,000. …………
Prepare journal entries to record the 2014 transactions of Crawford Company.
STATUS
E8-14: Lashkova Company had accounts receivable of $100,000 on January 1, 2014. The only transactions that affected accounts receivable during 2014 were net credit sales of $1,000,000, cash collections of $920,000, and accounts written off of $30,000. …………
a) Compute the ending balance of accounts receivable.
b) Compute the accounts receivable turnover ratio for 2014.
c) Compute the average collection period in days.
P8-7A: On January 1, 2014, Derek Company had Accounts Receivable $139,000, Notes Receivable $30,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Kaye Noonan Company. It is a 4-month, 12% note dated December 31, 2013. Derek Company prepares financial statements annually. During the year, the following selected transactions occurred. …………
