Carson's Bakery had Gross Sales of $200,000. The company was charged $1,000 in credit card fees, $10,000 of sales were returned, the company provided $2,000 worth of discounts to their customers, the company had a balance of $3,000 in the allowance for doubtful account. What is the value of Sales revenue, net on the company income statement? O $189,000 O $184,000 O $187,000 O $200,000

Carson's Bakery had Gross Sales of $200,000. The company was charged $1,000 in credit card fees, $10,000 of sales were returned, the company provided $2,000 worth of discounts to their customers, the company had a balance of $3,000 in the allowance for doubtful account. What is the value of Sales revenue, net on the company income statement? O $189,000 O $184,000 O $187,000 O $200,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Martel Co. has 320,000 in Accounts Receivable on December 31, 20-1, the end of its first year of operations. The business is new, so it has no prior experience with uncollectible accounts. In Martels overall industry, the percentage of uncollectible accounts receivable is about 3%. For companies similar to Martel in size and operations, the percentage is about 5%. Martel decides to use the overall industry experience as the basis for its estimate of uncollectible accounts. Prepare the adjusting entry on December 31, 20-1 for Martel Co.s uncollectible accounts.
A car dealership sells a car to a customer for $35,000. The customer makes a 10% down payment, and the dealership finances the remaining 90% in-house. How much will the car dealership record in Accounts Receivable for this customer? A. $31,500 B. $19,250 C. $8,750 D. $7,000
Raven Company had the following account balances Sales Revenue, $100,000; Sales Returns and Allowances, $2,400; Sales Discounts, 2,400; and Bad Debts, $400. Given these balances, the amount of net sales is a.$95,600 b.$95,200 c.$100,000 d.$98,000
Von Company provided the following data for the current year in relation to accounts receivable: Debits: Jan. 1 balance after deducting credit balance of P30,000 530,000 Charge sales 5,250,000 Charge for goods out for consignment 50,000 Shareholders’ subscription receivable 200,000 Accounts written off but recovered 10,000 Cash paid to customer for Jan. 1 credit balance 25,000 Goods shipped to cover for Jan. 1, credit balance 5,000 Deposit on Contract 120,000 Claim against common carrier 15,000 Advances to supplier 155,000 Credits Collections from customers, including overpayment of P50,000 5,200,000 Write off 35,000 Merchandise returns 25,000 Allowances to customers for shipping damages 15,000 Collection on carrier claim 10,000 Collection on subscription 50,000 What is the balance of accounts receivable on December 31
On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a credit balance of $5,000 in the allowance for expected credit losses. December 31 is the company’s reporting date. During 20X2, the company had the following transactions: a. The company made a credit sale of $300,000. b. The company collected accounts receivable for 350,000. c. The company wrote off the uncollectible accounts for $12,000. d. The company collected the receivable of $4,000 that had been written off previously. Required Note: Show calculation: (1) Prepare journal entries to record the above four transactions. (2) Assume that 2% of the company’s accounts receivable cannot be collected, prepare the adjusting journal entry at the end of 20X2.
Al Zain Company doing the business for sale of Electronics. The company made total sales of 10 Million in which Cash Sales were OMR 1 Million. As the Company make sales on credit to different customers it reports the following financial information before adjustments.Debit Balance of Account Receivable OMR 375,000. Credit Balance of Allowance for Doubtful Accounts OMR 22,500.Al Zain Company estimates bad debts at 3.5% of net sales and follows direct write off method to record the Journal entries. Based on the previous years’ experience Al Zain Company also estimated bad debts at 6.25% of account receivables as per the allowance method on credit sales. As Al Zain Company has not received the full amount it has written off the estimated amount of account receivables on 30 October. In the month of January the customers has paid the full amount which was written off by Al Zain Company. You are required to pass necessary Journal entries.
During the month of September,Dalgona Supply store sold $58,000 of inentory,with $12,000 sold on credit and the remaining for cash.The business collected $20,000 from the previous month's credit sales that excluded a bad debt of $1,000.The inventory sold was purchased at a cost of $34,800.What was the total revenue recognised in the month of September?(Ignore GST for this question) A.46,000 B.None of the other answers C.58,000 D.57,000 E.78,000
ABC Corporation uses the cash basis of accounting. Damalerio collected P1,400,000 from its customers during the year. Damalaerio had P100,000 in Accounts receivable at the beginning of the year, and P180,000 in Accounts receivable at the end of the year. The company also had P40,000 and P50,000 of allowance for bad debts at the beginning and at the end of the year, respectively. What is ABC Corp's Sales Revenue under accrual basis of accounting assuming that company had sales discount amounting to P50,000 and sales returns (all before collections) amounting to P70,000. 1,480,000 1,530,000 1,550,000 1,600,000