PLEASE ANSWER IT ASAP and CORRECTLY for an upvote. Thank you. Kiara MerchandisingStatement of Finandal PositionFor the Years Ended December 31VerticalHorizontal Analy sisPercentage ofAnalysisIncreaseIncrease(Decrease)2019P575,000.00 P360,000.0040,000.00Assets2018(Decrease)Cash in bankAccounts Receivable65,000.00Inventories78,500.0011,000.0053,000.009,000.00SuppliesFurniture and Fixtures100,000.0070,000.00100,000.0045,000.00Catering EquipmentAccumulated Depreciation - Catering EquipTotal Assets(11,200.00)P863,300.00 P624,500.00(7,500.00)Liabilities and Owner's EquityP89,700.00 P50,000.00Accounts PayableUtilities PayableSalaries PayableCorpuz, CapitalTotal Liabilties and Owner's Equity15,000.0020,000.0030,000.00728,600.00P863.300.00 P624,500.0015,000.00539,500.00Kiara MerchandisingStatement of Comprehensive IncomeFor the Years Ended December 31VerticalHorizontal Analy sisPercentage ofAnalysisIncreaseIncrease20192018(Decrease)(Decrease)SalesLess Cost of Goods SoldGross profitLess Operating ExpensesNet income before taxIncome TaxNet Income710,000.00345,670.00364,330.0088,235.00276,095.00852,000.00298,470.00553,530.00123.450.00430,080.0060,000.00370,080.0030,000.00246,095.00

Under horizontal analysis, each number is compared with previous year number in absolute amount and…

Kiara Merchandising Statement of Finandial Posiion For the Years Ended December 31 Vertical Horizontal Analy sis Percentage of Increase (Decrease) Analysis Increase (Decrease) Assets 2019 P575,000.00 P360,000.00| 40,000.00 2018 Cash in bank Accounts Receivable Inventories Supplies Furniture and Fixtures Catering Equipment Accumulated Deprediation - Catering Equip 65,000.00 78,500.00 11,000.00 100,000.00 70,000.00 53,000.00 9,000.00 100,000.00 45,000.00 (7500.00) (11,200.00) P863,300.00 P624,500.00 Total Assets Liabilities and Owner's Equity Accounts Payable Utilities Payable Salaries Payable Corpuz, Capital Total Liabiltes and Owner's Equity P50,000.00 20,000.00 P89,700.00 15,000.00 30,000.00 728,600.00 P863,300.00 P624,500.00 15,000.00 539,500.00 Klara Merchandising Statement of Comprehensive Income For the Years Ended December 31 Vertical Horizontal Analysis Percentage of Increase (Decrease) Analysis Increase (Decrease) 2019 852,000.00 298 470.00 553,530.00 123,450.00 430,080.00 60,000.00 370,080.00 2018 710,000.00 Sales Less Cost of Goods Sold Gross profit Less Operating Expenses Net income before tax Income Tax Net Income 345,670.00 364,330.00 88,235.00 276,095.00 30,000.00 246,095.00

Kiara Merchandising Statement of Finandial Posiion For the Years Ended December 31 Vertical Horizontal Analy sis Percentage of Increase (Decrease) Analysis Increase (Decrease) Assets 2019 P575,000.00 P360,000.00| 40,000.00 2018 Cash in bank Accounts Receivable Inventories Supplies Furniture and Fixtures Catering Equipment Accumulated Deprediation - Catering Equip 65,000.00 78,500.00 11,000.00 100,000.00 70,000.00 53,000.00 9,000.00 100,000.00 45,000.00 (7500.00) (11,200.00) P863,300.00 P624,500.00 Total Assets Liabilities and Owner's Equity Accounts Payable Utilities Payable Salaries Payable Corpuz, Capital Total Liabiltes and Owner's Equity P50,000.00 20,000.00 P89,700.00 15,000.00 30,000.00 728,600.00 P863,300.00 P624,500.00 15,000.00 539,500.00 Klara Merchandising Statement of Comprehensive Income For the Years Ended December 31 Vertical Horizontal Analysis Percentage of Increase (Decrease) Analysis Increase (Decrease) 2019 852,000.00 298 470.00 553,530.00 123,450.00 430,080.00 60,000.00 370,080.00 2018 710,000.00 Sales Less Cost of Goods Sold Gross profit Less Operating Expenses Net income before tax Income Tax Net Income 345,670.00 364,330.00 88,235.00 276,095.00 30,000.00 246,095.00

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 65E: Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared...

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Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.
Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed the following information relating to its receivables: The company has a recourse liability of 700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled 2,200,000, and collections on accounts receivable (unassigned) amounted to 1,900,000. Uncollectible accounts totaling 18,000 from several customers were written off, and a 1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmons receivables occurred during the year: On December 31, 2019, an aging of the accounts receivable balance indicated the following: Required: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmons December 31, 2019, balance sheet. 3. Next Level Compute Blackmons accounts receivable turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?
McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.
Write-Off of Uncollectible Accounts King Enterprises had 27 customers utilizing its financial planning services in 2019. Each customer paid King $25,000 for receiving Kings assistance. King estimates that 2% of its $675,000 credit sales in 2019 will be uncollectible. During 2020, King wrote off $2,700 related to services performed in 2019. Required: 1. Prepare the journal entry to record the defaulted balance. 2. Prepare the adjusting entry to record the bad debt expense for 2019.
Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared the following data for sales and losses from uncollectible accounts: Required: 1. Calculate the average percentage of losses from uncollectible accounts for 2015 through 2018. 2. Assume that the credit sales for 2019 are $1,260,000 and that the weighted average percentage calculated in Requirement 1 is used as an estimate of loses from uncollectible accounts for 2019 credit sales. Determine the bad debt expense for 2019 using the percentage of credit sales method. 3. CONCEPTUAL CONNECTION Do you believe this estimate of bad debt expense is reasonable? 4. CONCEPTUAL CONNECTION How would you estimate 2019 bad debt expense if losses from uncollectible accounts for 2018 were What other action would management consider?
Accounting for Notes Receivable Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable: a. On September 1, 2019, Yarnell sold a $10,000 system to Ross Company. Ross gave Yarnell a 6-month, 7% note as payment. b. On December 1, 2019, Yarnell sold a $6,000 system to Searfoss Inc. Searfoss gave Yarnell a 9-month, 9% note as payment. c. On March 1, 2020, Ross paid the amount due on its note. d. On September 1, 2020, Searfoss paid the amount due on its note. Required: Prepare the necessary journal and adjusting entries for Yarnell Electronics to record these transactions.
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?
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
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Dortmund Stockyard reports $896,000 in credit sales for 2018 and $802,670 in 2019. It has a $675,000 accounts receivable balance at the end of 2018, and $682,000 at the end of 2019. Dortmund uses the balance sheet method to record bad debt estimation at 8% during 2018. To manage earnings more favorably, Dortmund changes bad debt estimation to the income statement method at 6% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Dortmund Stockyard in 2019 as a result of its earnings management.
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