You are given the following information relating to Exodus Trading: Gross profit rate based on cost 25% Accounts receivable, December 31, 2021 P 120,000 Allowance for bad debts, December 31, 2021 3,000 Collections of accounts receivable in 2022 645,000 Cost of goods available for sale in 2022 690,000 Merchandise inventory, December 31, 2022 150,000 Assuming all sales were on account, what was the company’s accounts receivable balance at December 31, 2022? How much is the bad debts expense in 2022 if the allowance for bad debts was estimated to be 5% of the outstanding accounts receivable as of Dec. 31, 2022?
You are given the following information relating to Exodus Trading: Gross profit rate based on cost 25% Accounts receivable, December 31, 2021 P 120,000 Allowance for bad debts, December 31, 2021 3,000 Collections of accounts receivable in 2022 645,000 Cost of goods available for sale in 2022 690,000 Merchandise inventory, December 31, 2022 150,000 Assuming all sales were on account, what was the company’s accounts receivable balance at December 31, 2022? How much is the bad debts expense in 2022 if the allowance for bad debts was estimated to be 5% of the outstanding accounts receivable as of Dec. 31, 2022?
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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You are given the following information relating to Exodus Trading:
Gross profit rate based on cost |
25% |
|
P 120,000 |
Allowance for |
3,000 |
Collections of accounts receivable in 2022 |
645,000 |
Cost of goods available for sale in 2022 |
690,000 |
Merchandise inventory, December 31, 2022 |
150,000 |
Assuming all sales were on account, what was the company’s accounts receivable balance at December 31, 2022?
How much is the bad debts expense in 2022 if the allowance for bad debts was estimated to be 5% of the outstanding accounts receivable as of Dec. 31, 2022?
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