Mouse Co. started operations on January 1, 2021. Following data are available as of June30, 2021:Purchase of merchandise - P9,000,000Inventory, June 30, 2021 – P1,500,000Goods were sold at 50% above cost75% of sales were on creditEstimated bad debts – 19% of credit salesCollections from charge customers – P6,300,000Allowance for doubtful accounts, June 30, 2021, after write-off of uncollectible accounts- P78,075.What is the outstanding accounts receivable on June 30, 2021?

Accounts receivable indicates the amount owed by customer to the firm for credit sales made to them.…

Mouse Co. started operations on January 1, 2021. Following data are available as of June 30, 2021: Purchase of merchandise - P9,000,000 Inventory, June 30, 2021 – P1,500,000 Goods were sold at 50% above cost 75% of sales were on credit Estimated bad debts – 1% of credit sales Collections from charge customers – P6,300,000 Allowance for doubtful accounts, June 30, 2021, after write-off of uncollectible accounts - P78,075. What is the outstanding accounts receivable on June 30, 2021?

Mouse Co. started operations on January 1, 2021. Following data are available as of June 30, 2021: Purchase of merchandise - P9,000,000 Inventory, June 30, 2021 – P1,500,000 Goods were sold at 50% above cost 75% of sales were on credit Estimated bad debts – 1% of credit sales Collections from charge customers – P6,300,000 Allowance for doubtful accounts, June 30, 2021, after write-off of uncollectible accounts - P78,075. What is the outstanding accounts receivable on June 30, 2021?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

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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.
Aerospace Electronics reports $567,000 in credit sales for 2018 and $632,500 in 2019. They have a $499,000 accounts receivable balance at the end of 2018, and $600,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 5% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 7% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Aerospace Electronics in 2019 as a result of its earnings management.
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Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
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?
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Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.
Fortune Accounting reports $1,455,000 in credit sales for 2018 and $1,678,430 in 2019. It has an $825,000 accounts receivable balance at the end of 2018 and $756,000 at the end of 2019. Fortune uses the balance sheet method to record bad debt estimation at 7.5% during 2018. To manage earnings more favorably, Fortune changes bad debt estimation to the income statement method at 5.5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Fortune in 2019 as a result of its earnings management.