A portion of the current assets section of the December 31, 2019, balance sheet for Gibbs Co. is presented here: Accounts receivable$23,700 Less: Allowance for bad debts (3,500)$20,200 The company’s accounting records revealed the following information for the year ended December 31, 2020: Sales (all on account)$154,500Cash collections from customers 147,000Accounts written off 2,900Bad debts expense (accrued at 12/31/20) 5,800 Required:Calculate the net realizable value of accounts receivable at December 31, 2020, and prepare the appropriate balance sheet presentation for Gibbs Co. as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.) At December 31, 2020Accounts receivableLess: Allowance for bad debtsAccounts receivable (Net)

Ending Balance of Accounts Receivable 23,700 Cash collections from customers…

Calculate the net realizable value of accounts receivable at December 31, 2020, and prepare the appropriate balance sheet presentation for Gibbs Co. as of that point in time. (Hint: Use T-accounts to analyze the Accounts

Calculate the net realizable value of accounts receivable at December 31, 2020, and prepare the appropriate balance sheet presentation for Gibbs Co. as of that point in time. (Hint: Use T-accounts to analyze the Accounts

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

See similar textbooks

Related questions

Q: On January 1, 2020, the records of ABC Company showed a debit balance of P650,000 in its Accounts…

A: Money owed to the seller from purchasers who have not yet paid for their goods is referred to as…

Q: Husain Corporation has the following account it trial balance at the end of year: Accounting…

A: Current assets: Current assets are all those assets which are expected to be sold or used as a…

Q: A portion of the current assets section of the December 31, 2019, balance sheet for Gibbs Co. is…

A: In order to derive the net realisable value, T-accounts of the Accounts Receivable Account &…

Q: The following accounts and their balances appear in an unadjusted trial balance of Achiever Company…

A: Current assets are the assets which can be converted into liquidity within a period of one year or…

Q: The balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance for…

A: Journal: Recording of a business transactions in a chronological order.

Q: Bugler Corp had the following transactions for 2021 related to bad debts. Bugler began 2021 with…

A: The allowance for doubtful accounts receivable balance is the contra asset for the business. The net…

Q: The December 31, 2021, balance sheet of the Kingbird, Inc. had Accounts Receivable of $670,000 and a…

A: GIVEN : December 31, 2021 Accounts Receivable = $670,000 Credit balance in Allowance for Doubtful…

Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…

A: Entry:- Accounts Receivable Sales (being sales made) Cash Accounts Receivable…

Q: The following accounts and their balances appear in an unadjusted trial balance of CASHEW Company as…

A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…

Q: A portion of the current assets section of the December 31, 2020, balance sheet for Carr Co. is…

A: Accounts receivable indicate the balances on accounts of customers to whom the company sold goods on…

Q: The following transactions (in summary) affecting the accounts receivable of Seraphine company…

A: Allowance Method - Under allowance method company make provision of uncollectible accounts at the…

Q: For the next two (2) questions: Selected balances related to the accounts receivable of ABC Company…

A: >Account receivables are the balances of customers or borrowers who owe the business certain…

Q: Presented below are unaudited balances of selected accounts of Angelica Company as of December 31,…

A: SOLUTION- NOTE- IN THE CASE OF SALE FOB SHIPPING POINT , THE OWNERSHIP OF GOODS IS TRANSFERRED…

Q: 1.The following accounts and their balances appear in an unadjusted trial balance of Achiever…

A: The current assets are those assets which can normally be converted into cash withing on year of…

Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Salazar Inc. shows the following information on May 31, 2024, the company's fiscal year-end: Account…

A: The allowance for doubtful accounts is established to record of estimated bad debts.

Q: The following information was taken from the accounts receivable records of Pina Colada Corporation…

A: OutstandingBalance PercentageEstimated to beUncollectible Estimatedto beUncollectible 0 –…

Q: On January 1, 2019, Import Properties Inc. reported the following balances on its statement of…

A: Allowance for doubtful debt is an account that records the amount of receivables expected to be…

Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…

A: Accounts receivable is the term which is defined as the payment or the proceeds that the company or…

Q: Company had the following information relating to its accounts receivable:…

A: Solution: Accounts receivable are effected by the sales during the period, collection and written…

Q: The following is a portion of the current assets section of the balance sheets of Avanti's, Inc., at…

A: Accounts receivable are legitimately enforceable returns or payments which the organization will get…

Q: The financial statements of Dimple Company included the following information:…

A: Therefore Net Realizable Value of Accounts Receivable on December 31, 2019 is 1650000.

Q: he December 31,2020 balance sheet of a company showed account receivable of 480,000 and an allowance…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: The December 31, 2021, balance sheet of the Kingbird, Inc. had Accounts Receivable of $670,000 and a…

A: GIVEN : December 31, 2021 Accounts Receivable = $670,000 Credit balance in Allowance for Doubtful…

Q: Shown below are selected accounts and their balances for the KTS Company as of December 31, 2021:…

A: Current assets: Current assets are all those assets that are expected to be sold or used as a result…

Q: ABC Inc. reported revenue of P1,980,000 in its income statement for the year ended December 31,…

A: Cash Accounting The cash basis of accounting states that only on account of cash inflow and outflow…

Q: The following accounts and their balances appear in an unadjusted trial balance of Achiever Company…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: The balances of the selected accounts taken from the December 31,2020 balance sheet of Madagascar…

A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…

Q: Arlington Cycle Company began operations on January 1, 2020. The company reported the following…

A: BAD DEBT IS A DEBT WHICH IS UNCOLLECTIBLE AND IS WORTHLESS TO A CREDITOR . CALCULATION FOR BAD…

Q: Marion Company had sales revenue of $765,000 in 2019. Allowance for Bad Debts has a credit balance…

A: Age of Accounts Receivable AccountsReceivable PercentUncollectible EstimatedUncollectible 1-30 $…

Q: Rifle Co. is a distributing company selling toy guns to retailers at 10/15, 5/20, n/30 and it…

A: Answer) Under ageing of receivables method, the allowance for uncollectible accounts is calculated…

Q: Rifle Co. is a distributing company selling toy guns to retailers at 10/15, 5/20, n/30 and it…

A: Calculation of amount of accounts receivable on December 31, 2021 Accounts Receivable Debit…

Q: Injae Trading Company prepared an aging of its accounts receivable on December 31, 2020 and…

A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…

Q: Shown below are selected accounts and their balances for the Zay Company as of December 31, 2021…

A: Current liabilities are short term obligations which are due within 1 year or an operating cycle…

Q: Assuming that the over 180 days account is 100% uncollectible, how much is the balance of allowance…

A: Account receivable = 500000+3120000 -3020160-42000+2160 = 560000

Q: At 30 June 2018 a company’s allowance for receivables was £39,000 At June 2019, trade receivables…

A: P&L statement is the financial system about revenues and expenses incurred during a period of…

Q: Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year…

A: Solution: Balance of accounts receivables at the end of 2021 = Revenue - Collections -Write offs =…

Q: ost the beginning balance and the journal entries to the T-account Allowance for Doubtful Accounts.…

A: Introduction: Allowance for Doubtful accounts is a contra asset, that it is related with the…

Q: The following information was taken from the accounts receivable records of Sarasota Corporation as…

A: Calculation of Estimated Uncollectibles Particular Outstanding Balance Percentage Estimated to be…

Q: An analysis of cash received from customers during the year revealed that the P705,600 was received…

A: Businesses dealing with goods and services mostly function on the credit system. A portion of the…

Q: The following information was taken from the accounts receivable records of Pina Colada Corporation…

A: calculation of uncollectible Particular OutstandingBalance Percentage Estimatedto be…

Q: The balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance for…

A: Allowance for doubtful debt is created for the accounts receivables whose recovery is uncertain. It…

Q: What is the total current assets and total current liabilities at December 31, 2020?

A: As per US GAAP Current Assets means cash and other assets or resources commonly identified as those…

Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…

A: There are 2 methods used in accounting for uncollectible accounts:- Direct write-off method…

Q: XYZ Company showed the following account balances as of December 31, 2020 : Net sales -P400,000;…

A: Bad debts: It is a part of record of accounts receivable that is uncollectible during the year

Q: During 2018, its first year of operations, Pave Construction provides services on account of…

A: Given, Credit sales = $144,000 Collections = $102,000 Uncollectible accounts %= 20%

Q: Rifle Co. is a distributing company selling toy guns to retailers at 10/15, 5/20, n/30 and it…

A: Calculation of Balance of Accounts receivable on December 31, 2021 Accounts Receivable Debit…

Q: The balances of the selected accounts taken from the December 31,2020 balance sheet of Madagascar…

A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…

Q: The following information relates to Maharlika Corporation for the year ended June 30, 2021. Sales…

A: Bad debt refers to the sum of money or loan amount that is still owed to someone and which does not…

Q: Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year…

A: Ending Accounts Receivable balance on 12/31/2021 = Services on Account - Amount Written Off - Amount…

Question

A portion of the current assets section of the December 31, 2019, balance sheet for Gibbs Co. is presented here:


Accounts receivable	$	23,700
Less: Allowance for bad debts		(3,500	)	$	20,200

The company’s accounting records revealed the following information for the year ended December 31, 2020:


Sales (all on account)	$	154,500
Cash collections from customers		147,000
Accounts written off		2,900
Bad debts expense (accrued at 12/31/20)		5,800

Required:
Calculate the net realizable value of accounts receivable at December 31, 2020, and prepare the appropriate balance sheet presentation for Gibbs Co. as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.)

At December 31, 2020
Accounts receivable
Less: Allowance for bad debts
Accounts receivable (Net)

Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Elegant Universal uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Universal considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Describe the categories change effect on net income and accounts receivable.
Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000
Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.
Goods for Less uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Goods for Less considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Describe the categories change effect on net income and accounts receivable.
Outpost Designs uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Outpost Designs decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.
Estimating Bad Debts from Receivables Balances The following information is extracted from Shelton Corporations accounting records at the beginning of 2019: During 2019, sales on credit amounted to 575,000, 557,400 was collected on outstanding receivables and 2,600 of receivables were written off as uncollectible. On December 31, 2019, Shell on estimastes its bad debts to be 4% of the outstanding gross accounts receivable balance. Required: 1. Prepare the journal entry necessary to record Sheltons estimate of bad debt expense for 2019. 2. Prepare the Accounts Receivable section of Shelton's December 31, 2019, balance sheet. 3. Compute Shelton's receivables turnover. (Round to one decimal place.) 4. It Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 2?
Elegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Linens considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.
1. What amount of Accounts receivable at December 31,2020, before deducting the allowance for bad debts? 2. What is the amount of Allowance for uncollectible accounts as of December 31,2019?
1. How much should be reported as bad debts expense for the year ended December 31, 2020? 2. What is the net realizable value of the Accounts receivables on December 31, 2020?
What are the balances of accounts receivable, related allowance account, and bad debts expense on December 31, 2021? A. P7,092,000, P1,110,130, and P756,130 B. P9,616,000, P1,653,370, and P756,130 C. P9,616,000, P1,791,610, and P1,437,610 D. P9,104,000, P1,653,370, and P1,299,370
Question: At what amount should Accounts Receivable, net of Allowance for Doubtful Accounts, be reported at December 31, 2021?
At what amount should Accounts Receivable, net of Allowance for Doubtful Accounts, be reported at December 31, 2021?