Brief Exercise 8-10 During its first year of operations, Sarasota Corp. had cred

Question

Brief Exercise 8-10 During its first year of operations, Sarasota Corp. had credit sales of $3,151,100, of which $418,700 remained uncollected at year-end. The credit manager estimates that $18,140 of these receivables will become uncollectible Your answer is correct. Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense 18,140 Allowance for Doubtful Accounts 18,140 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT LINK TO TEXT INTERACTIVE TUTORIAL INTERACTIVE TUTORIAL

Explanation / Answer

Average collection period = 365 / Accounts receivable turnover ratio = 365 / 10.2 = 35.8 days

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