Jay Company provided the following data relating to accounts receivable for the current year:               Accounts receivable, January 1     650,000 Credit Sales     2,700,000 Sales returns     75,000 Accounts written off     40,000 Collections from customers     2,150,000 Estimated future sales returns at December 31     50,000 Estimated uncollectible accounts at 12/31 per aging     110,000         What is the amortized cost of accounts receivable on December 31?         a. 1,200,000       b. 1,125,000       c. 1,085,000       d. 925,000

Q: A company reports the following: Sales $1,460,000 Average accounts receivable (net) 100,000…

A: a Account  receivable turnover=sales/ average account receivable (net) =$1,460,000/$100,000 =14.6

Q: Last year, Dogwood Company had net sales of $9,690,000 and cost of goods sold of $4,812,000. Dogwood…

A: Accounts receivable turnover ratio = Net credit sales / Average accounts receivable

Q: The credit manager of Sweet Sales Inc. has gathered the following information about the company's…

A: Journal Entries- Journal entries refer to the certified book of a corporation which is used to…

Q: A recent annual report for NPS contained the following data: (dollars in thousands) Previous Year…

A: Accounts Receivable Turnover represents the efficiency of the company to convert its Accounts…

Q: Confection Bakery Supply began the year with an Accounts Receivable balance of $25,000. Net sales…

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

Q: The following are the transaction for the month of February     Cash Sales   $45000   Credit…

A: Accounts receivable:  It is a current asset of an organization. It is the amount due from customers…

Q: The financial statements of Marigold Manufacturing Company report net sales of $1278000 and accounts…

A: In order to compute the average collection period of account receivable, we need to first determine…

Q: Mifflin Co. reported the following for the current year: net sales of $60,000; cost of goods sold of…

A: Financial ratio: It can be defined as the relative magnitude of two selected financial values taken…

Q: Jinx Company provided the following information for 2013 in relation to accounts receivable:…

A: Formula: Net sales = Credit sales - Sales returns Deduction of sales returns from sales derives the…

Q: A company has the following account balances at the end of the year:• Credit Sales = $400,000•…

A: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from…

Q: Soap Co. has the following information on December 31, 20x1 before any year-end adjustments.…

A: Gross credit sales = Total Sales  - cash Sales  = 2,280,000 - 380,000 = ₱1,900,000 Net credit sales…

Q: The following information pertains to Lightning Inc., at the end of December: Credit Sales $20,000…

A: 7% of receivables not yet due accounts = 7%×$9500=$66517% of receivables less than 30 days past due…

Q: Noreen Company provided the following information for 2020: Accounts receivable – January 1…

A: Accounts receivables are those customer accounts to whom the business has made credit sales on…

Q: Assuming 77 percent of sales are on credit, what is the company's days' sales in receivables?

A: Information Provided: Net Income = $191,000 Profit Margin = 9.10% Accounts Receivable = $106,919…

Q: A company reports the following: Sales $303,680 Average accounts receivable (net) 23,360 Determine…

A: Accounts receivable turnover ratio shows how quickly company is able to collect amount from the…

Q: Based on the following data for the current year, what is the number of days' sales in receivables?…

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

Q: A company has the following account balances at the end of the year:• Credit Sales = $400,000•…

A: Estimates future uncollectible accounts = 4% of accounts receivable = $80,000 x 4% = $3,200

Q: JKL Company’s sales are $1,000,000 and 80% of those sales are on credit. The beginning and ending…

A: Average Collection Period: In terms of Accounts Receivable, the average collection time of the…

Q: Determine the estimated cash collected on customers' accounts in June.

A: For Customers receiving discount: May month collection in June = (140000*15%) - 2% discount = $20580…

Q: A company reports the following: Sales $315,360 Average accounts receivable (net) 39,420 Determine…

A: Accounts receivable turnover = ( Net Credit Sales / Average Accounts receivable ) Number of days'…

Q: A. Assume that all sales are on account. If sales revenue was $18,000,000 and the average days in…

A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…

Q: A company reports the following: Sales $859,940 Average accounts receivable (net) 45,260…

A: Account Receivables turnover ratio: Account Receivables turnover ratio is mainly used to evaluate…

Q: Spencer Consulting, which invoices its clients on terms 2/10, n/30, had credit sales for May and…

A: June collections= (25% of may collections)+ (75% of June collections) Where, 25% of May collections…

Q: Walker Clothing Store had a balance in the Accounts Receivable account of $390,000 at the beginning…

A: Income statement: The income statement is one of the three primary financial statements used to…

Q: On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May.…

A: Solution: Accounts Receivable are the balance of amount which is due to a company for the goods…

Q: Recent financial statements of Marin Ship Builders, Inc. report net sales of $636,800,000. Accounts…

A: Average Net Receivables = (Receivable at Beginning + Receivable at the End) / 2 Average Net…

Q: Martin Incorporated uses the percent-of-credit sales method to estimate uncollectibles. Total sales…

A: Bad debts expense = Credit sales x 5% Balance in allowance for uncollectible accounts after the…

Q: Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning…

A: Uncollectible Accounts Expense = Credit sales during the year  x 2% of all credit sales

Q: A company has the following account balances at the end of the year:• Credit Sales = $400,000•…

A: Bad Debt Expense = Estimates future uncollectible accounts - Beginning balance in Allowance for…

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: Lipovetsky Corp. has the following data relating to accounts receivable at the end of the current…

A: The net realizable value for accounts receivable is calculated as gross account receivables minus…

Q: A company reports the following: Sales $671,600 Average accounts receivable (net) 67,160 Determine…

A: Accounts receivable turnover = Sales / Average Accounts receivable where, Average Accounts…

Q: The financial statements of Bolero Manufacturing Inc. report net credit sales of $900,000 and…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: A company reports the following Sales $1,200,000 Average accounts receivables (net) 50,000 Determine…

A: Accounts receivables are the legal enforceable claims by the company for the products supplied to…

Q: ACCOUNTS RECEIVABLE. The Rivers Company reports the following data relative to accounts receivable:…

A: Accounts receivable turnover ratio = Net credit sales / Average Accounts Receivables where, Average…

Q: Financial statement data for the year ending December 31 for Flagg Co. are as follows: Sales…

A: The number of days sales in receivable indicates the number of days the credit sales converted into…

Q: Calculating the Average Accounts Receivable, the Accounts Receivable Turnover Ratio, and the…

A: Given in the question: Net Sales = $8,987,000 Accounts receivables on January 1 = $725,000 Accounts…

Q: he following data were reported by Son Goku Company during the current year: Accounts receivable –…

A: Under the cash basis of accounting, the revenues, as well as expenses, are recorded at the time when…

Q: A recent annual report for NPS contained the following data: (dollars in thousands) Previous Year…

A: Here, receivable turnover ratio is calculated by dividing net credit sales with the average account…

Q: Maple Leafs Construction has the following data for the year ended December 31, Year 1: Accounts…

A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…

Q: A company reports the following: Sales $1,092,080 Average accounts receivable 49,640 (net) Determine…

A: Accounts receivable turnover = Sales/Average accounts receivable Number of days' sales in…

Q: Pachel Corporation reports the following information pertaining to its accounts receivable:…

A: Age of receivables Rate Amount Estimated Bad debts Current 2% 60,000 1,200 1-30 4% 40,000 1,600…

Q: A company reports the following: Sales $1,332,250 Average accounts receivable (net) 53,290…

A: 1. Accounts Receivable Turnover Ratio = Net SalesAverage accounts receivable 2. The number of days'…

Q: The balance sheet of Omni, Inc., at the end of last year included the following EXERCISE 8-5…

A: A payment earned for a debt that was written off and deemed uncollectible is referred to as bad debt…

Q: The following data were reported by ABC Company during the current year: Accounts receivable –…

A: The question is based on the concept of Financial Accounting.

Q: Ben Corp has the following annual information: Receivable days assumption = 55 days Payable days…

A: Forecast of account receivables formula: Revenue which was forecasted * (Receivables in days / 365…

Q: 24. Noreen Company provided the following information for 2020: Accounts receivable - January 1…

A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…

Q: Spencer Consulting, which invoices its clients on terms 2/10, n/30, had credit sales for May and…

A: June collections= (25% x May month sales) + (75% x June month sales) 25% of May month sales = (15%…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is