During its first year of operations, Mack’s Plumbing Supply Co. had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off method, and reported net income of $487,500. Determine what the net income would have been if the allowance method had been used and the company estimated that 1% of sales would be uncollectible.

Q: During its first year of operations, Sampson’s Cosmetics International had sales of $3,250,000,…

A: Estimated uncollectible amount = 1% of sales  = $3,250,000 x 1% = $32,500

Q: Hanse, Inc., has a cash cycle of 37.5 days, an operating cycle of 51 days, and an inventory period…

A: We need to use the following equations for calculation of accounts payable and accounts receivable…

Q: For its most recent year a company had Sales (all on credit) of $750,000 and Cost of Goods Sold of…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: For the past year, Hawkeye, Inc., had a cost of goods sold of $63,882. At the end of the year, the…

A: Accounts payable turnover in days is used to signify how long it takes a company to clear its…

Q: Fan-Tastic Sports Gear Inc. recorded $3,000,000 of sales last year and projects sales to increase by…

A: Allowance for uncollectible accounts is allowance made for bad and doubtful debts. This allowance…

Q: thod, and reported net income of $47,300. Determine what the net income would have been if the…

A: The allowance method involves setting money aside for future bad debts that are predicted to arise.…

Q: Langston’s purchased $3,100 of merchandise during the month, and its monthly income statement shows…

A: We know that cost of goods sold is  Opening stock + Purchases - Closing stock = Cost of goods sold…

Q: During the year, Darla's Pet Shop's merchandise inventory decreased by P20,000. If the company's…

A: Purchase = Cost of goods sold for the year - Decrease in merchandise inventory

Q: BC Corp. reported a P500,000 account receivable balance at the beginning of the calendar year. For…

A: It is the money due from the person to whom the service or goods are provided. It is also known as…

Q: Industria del Norte has receivable accounts of $ 42,300, inventory of $ 61,200, sales of $ 544,200,…

A: The number of days to sell all inventory can be ascertained by using the days sales of inventory…

Q: Dexter, Incorporated, had a cost of goods sold of $43,921. At the end of the year, the accounts…

A: Cost of goods sold = 43921 Accounts payable balance = 7943 Payable Turnover ratio= Net credit…

Q: At the beginning of the current period, Tamarisk, Inc. had balances in Accounts Receivable of…

A: Accounts Receivable- It is the amount which has not been received by the company from its customers…

Q: For the past year, Hawkeye, Inc., had a cost of goods sold of $68,382. At the end of the year, the…

A: The average number of days that takes by the corporation to pay back its accounts payable is…

Q: During October 2008, Katie’s Catering Company generated revenues of P13,000. Sales discounts totaled…

A: Solution: Net sales = Gross sales  - Sales discounts = P13,000 - P200 = P12,800

Q: Besoluck company has sales of P480,000 and P450,000 for September 4 points and October respectively.…

A: Reserve for doubtful accounts represents the estimation of the management for the accounts…

Q: During its first year of operations, Mack's Plumbing Supply Co. had sales of $6,740,000, wrote off…

A: The allowance method is used when accounts receivable are doubtful.It can be calculated by the…

Q: Besoluck company has sales of P480,000 and P450,000 for September and October respectively. Of the…

A:

Q: Fan-Tastic Sports Gear Inc. recorded $2,900,000 of sales last year and projects sales to increase by…

A: 2. Compute the amount of adjusting entry to provide for doubtful accounts on December 31. Thus, the…

Q: Heritage, Inc., had a cost of goods sold of $68,314. At the end of the year, the accounts payable…

A: Calculate the accounts payable days as follows:

Q: During the first year of operations, Family Ventures, a Boston-based construction company, had sales…

A: Sales: Sales include a number of goods and services sold by the organization during their accounting…

Q: Mario's Home Systems has sales of $2,830, costs of goods sold of $2,170, inventory of $506, and…

A: Given, sales of $2,830, costs of goods sold of $2,170, inventory of $506, and accounts receivable of…

Q: The following monthly data are taken from Ramirez Company at July 31: Sales salarles, $560,000;…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Yellow Company had a balance of $85,000 in Accounts Payable at the beginning of June, and purchased…

A: Opening accounts payable = $85,000 Purchases = $180,000 Closing accounts payable = $60,000

Q: Futing its first of operations, Mack's plumbing supply co. Haf sales of $610,000, wrote off $9,800…

A: Uncollectible accounts: An uncollectible account refers to the accounts receivable that are…

Q: At the end of the annual reporting period, the accounts of Berry Company showed the following…

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

Q: The financial statements of Danielle Manufacturing Company report net sales of $750,000 and accounts…

A: Accounts receivables turnover ratio refers to the efficiency ratio which measures the effectiveness…

Q: During the first year of operations, family ventures, a boston based construction company, had sales…

A: Working Note: 1. Calculation of adjustment of allowances Bad debts  ( 1% of sale  4,350,000)…

Q: Falafel Hut has sales of $512,630. The cost of goods sold is equal to 60 percent of sales. The…

A: The accounts receivable are the current assets of the company. The increase in the credit sales or…

Q: For its most recent year a company had Sales(all on credit) of $830,000 and Cost of Goods Sold of…

A: Days of account receivables helps to understand how many days are required by the firm to clear its…

Q: Spider’s Auto Parts Store ended its fiscal year last month with a costof sales of $3,600,000 and an…

A: Formula to calculate inventory turnover ratio is: ITR=COST OF GOODS SOLDAVERAGE INVENTORY

Q: Sellall Department Stores reported the following amounts in its adjusted trial balance preparedas of…

A: Multi step income statement:   There are two ways to present and income stamen: Single-step and…

Q: During its first year of operations, Mack's Plumbing Supply Co. had sales of $6,740,000, wrote off…

A: Allowance for uncollectible accounts for second year = Sales * Percentage of uncollectible  =…

Q: At the beginning of the year, the inventory of a convenience store was 189,950. The purchases made…

A: Here in this question, we are required to calculate net profit/loss from the convenience store. Net…

Q: Baxley Brothers has a DSO of 23 days, and its annual salesare $3,650,000. What is its accounts…

A: Day sales outstanding=23 daysAnnual sales=$3,650,000Days per year=365 days

Q: The following are the year end balances in a business' ledgers: Sales 628,000 Cost of sales 458,000…

A: Introduction: Trial Balance: All the final ledger account balances are posted in Trial balance. To…

Q: For most of the recent year, John's Shoe Store had sales of $930,000 and cost of goods sold at…

A: Given: Cost of goods sold = $625,000 Beginning inventory = $230,000 Closing inventory = $170,000

Q: The Rollings Company had sales of $1,000 with cost of goods sold (COGS) equal to 30% of sales.…

A: Introduction: Net income refers to the after-tax income of an individual.  Net income can also be…

Q: 5. During its first year of operations, Sampson's Cosmetics International had sales of $3,250,000,…

A: Bad debts can be referred to as that portion of credit sales which cannot be recovered by the…

Q: Marbel had $4,448 million in sales and $1,218 million in ending accounts receivable for the current…

A: Note: Day's sales uncollected determines the no. of days a company take to collect its receivable on…

Q: At the end of the year Stan Still Stationery Store had the following balances: Sales $485,000; Sales…

A: Net sales can be calculated by deducting sales discounts and sales returns and allowances from the…

Q: During its first year of operations, Mack's Plumbing Supply Co. had sales of $3,250,000, wrote off…

A: Net income before write off of accounts = Net income after write off of accounts + Account wrote off…

Q: Heritage, Inc., had a cost of goods sold of $44,721. At the end of the year, the accounts payable…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: During its first month of business, Dig the Dogs, Inc. purchased $700 of hotdogs of which it paid…

A: The cost of goods sold is the cost that can be assigned to the goods that are sold during the year.…

Q: Dapper Hat Makers Company sells merchandise on credit. During the fiscal year ended July 31, the…

A: The percentage of net sales method The percentage of sales method is a ratio analysis tool used by…

Q: At the end of the first year of operations, Gaur Manufacturing had gross accounts receivable of…

A: Estimated allowance for uncollectible accounts = 6% x $300,000 = $18,000

Q: During the first year of operations, Ken's Data Ventures, a Dedham-based construction company, had…

A: