Financial accounting problems dealing with account receivable, preparing journal entries related to bad debts expense, computing bad debts amounts, accounts receivable turnover ratio, and weakness of direct-write off method.
Also please see the attached files P9-1A and P9-2A. P9-1A Preparing journal entries related to bad debts expense. At December 31 2007, Leis Co. reported the following information on its balance sheet. Accounts receivable $960,000 Less: Allowance for doubtful accounts 80,000 During 2008, the company had the follo