F. The records of Stedman Corp. included the following accounts, all of which are normal balances: Cash sales $1,200,000 900,000 180,000 200,000 3,000 5,000 Credit sales Balance in accounts receivable, 12/31/20 Balance in accounts receivable, 12/31/21 Balance in allowance for doubtful accounts, 12/31/20 Accounts written off as uncollectible during 2021 Stedman estimates bad debts as 2% of receivables at year end to be uncollectible. Write diuating ont

F. The records of Stedman Corp. included the following accounts, all of which are normal balances: Cash sales $1,200,000 900,000 180,000 200,000 3,000 5,000 Credit sales Balance in accounts receivable, 12/31/20 Balance in accounts receivable, 12/31/21 Balance in allowance for doubtful accounts, 12/31/20 Accounts written off as uncollectible during 2021 Stedman estimates bad debts as 2% of receivables at year end to be uncollectible. Write diuating ont

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 44E: Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note:...

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Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note: Round answers to two decimal places. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
27.The ABC Co disclosed the following data at Dec 31, 20X1:Account known to be worthless, P37,500Advance payment to creditors on purchase orders P50,000Customers accounts (credit balance due to returns), P5,000Advances to employees, P34,000Trade receivable, P169,000Other non trade receivables, P4,000The amount of receivables at Dec 31, 20X1 is: 173,000 252,000 257,000 289,500
Given below is the data: Accounts Receivable $64,780 Allowance for Uncollectible Accounts $865 credit Gross Sales $345,700 Charge sales $185,300 The aging of accounts receivable indicates uncollectible accounts of $2,295. A. What is the amount of bad debt expense if the aging method is used to estimate uncollectible accounts? B. If the company were to estimate uncollectible accounts based on 2% of charge sales, what would be the amount of bad debt expense?
1. Dyeing Company Inc.’s policy on doubtful accounts is estimated to be 8% of collections from sales on accounts. Accounts Receivable ending was recorded at P125,000 and beginning balance was P100,000.00. Sales amounted to P500,000 of which 50% was cash.. Doubtful accounts expense should be recorded as: 2. The existing allowance for doubtful accounts is P20,000. If the required allowance is 2 pct of the accounts and the balance is P1,480,000 net of unadjusted allowance, the bad debt expense for the year should be 3. Yankees, Inc. has 100,000 shares of P10 par value ordinary shares and 50,000 shares of P10 par value, 6%, cumulative, participating preferred sharees outstanding. Dividends on the preference shares are one year in arrears. Assuming that Yankees wishes to distribute P270,000 as dividends, the ordinary stockholders will receive ? 4. The stockholders equity section of K Pop Corp balance sheet at December 31, 2019 was as follows: Ordinary shares P10 par authorized…
Mountain Co.'s Accounts Receivable has a balance of P 240,000 at the beginning of the period. The following occurred during the period. a. Sales on account of P 300,000 b. Collection on account P 230,000 c. The collectability of P 30,000 accounts receivable is found to be doubtful. d. P 15,000 accounts receivable are deemed worthless. e. P 10,000 accounts receivable previously written off are subsequently collected What is the amount of Bad Debts Expense that shall be reported in the statement of financial performance?
The following information is available for Market, Inc. and Supply, Inc. at December 31: Accounts Market, Inc. Supply, Inc. Accounts receivable $ 58,600 $ 76,600 Allowance for doubtful accounts 2,748 3,156 Sales revenue 646,960 907,100 Requireda. What is the accounts receivable turnover for each of the companies?b. What is the average days to collect the receivables?c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?
The following information is available for Market, Incorporated and Supply, Incorporated at December 31. Accounts Market, Incorporated Supply, Incorporated Accounts receivable $59,800 $77,800 Allowance for doubtful accounts 2,548 2,956 Sales revenue 616,960 907,100 Required What is the accounts receivable turnover for each of the companies? What is the average days to collect the receivables? Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? What is the accounts receivable turnover for each of the companies? (Round your answers to 1 decimal place.) Company Accounts Receivable Turnover Market times Supply times What is the average days to collect the receivables? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to the nearest whole number.)…
An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $4,703. If Allowance for Doubtful Accounts has a $884 credit balance, the adjustment to record the bad debt expense for the period will require a a.debit to Bad Debt Expense for $3,819. b.debit to Bad Debt Expense for $884. c.credit to Allowance for Doubtful Accounts for $4,703. d.debit to Bad Debt Expense for $4,703.
19.Timothy Corp. had accounts receivable of P 150,000 and allowance for doubtful accounts of P 12,000 at the beginning of the period. During the period, Timothy Corp. made total sales of P 1,000,000 ( 40% were cash sales), collected P 9,000 a ccounts, recovered P 2,000 accounts, and recognized bad debts expense of P 15,000. How much is the carrying amount of accounts receivable at the end of the period? A.351,000 B.331,000 C.311,000 D.279,000 20.The current and noncurrent portions of Jonah Co.'s noninterest- bearing note receivable on Dec. 31, 2021 are P 127,104 and P 480,366, respectively. The note has a face amount of P 1,000,000, is dated Jann. 1, 2021 and is due 5 equal annual installments every Dec. 31. Jonah Co. reported interest income of P 86,515 in 2021 and P 72,896 in2022. How much is unamortized discount on the note on Dec. 31, 2023? * A.61,990 B.56,224 C.661,990 D.756,224
Gu Company provided the following from the unadjusted trial balance at year end Debit Credit Accounts Receivable 5,000,000 Allowance for Doubtful Accounts 40,000 Net Credit Sales 20,000,000 The entity estimated that 3% of the gross accounts receivable will become uncollectible What is the required allowance for doubtful accounts at year end? a. 150,000 b. 110,000 c. 190,000 d. 40,000