Financial Accounting (12th Edition) (What's New in Accounting)
Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter 5, Problem 5.65BP

1. and 3.

To determine

To prepare: T-accounts for accounts receivable and allowance for uncollectible accounts and post their balances.

2.

To determine

To journalize: The transactions of Corporation HS.

4.

To determine

To compute: The ending balances of accounts receivables and allowance for uncollectible accounts and the amount that would be collected from customers after October 31, 2019.

5.

To determine

To show: the net effect of these transactions on the income statement of Corporation HS for the year ended October 31.

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(Learning Objectives 1, 4, 5, 6: Apply GAAP for revenue, receivables,collections, and uncollectibles using the percent-of-sales method; account for notesreceivable) Hopewell Shipping Corporation is an overnight shipper. Since it sells on credit, thecompany cannot expect to collect 100% of its accounts receivable. At October 31, 2018, and2019, respectively, Hopewell reported the following on its balance sheet (in millions of dollars):October 31,2019 2018Accounts receivable.................................................. $4,200 $4,000Less: Allowance for uncollectible accounts...............Accounts receivable, net........................................... $4,030 $3,840(170) (160)During the year ended October 31, 2019, Hopewell earned service revenue and collected cashfrom customers. Assume uncollectible-account expense for the year was 5% of service revenueon account and Hopewell wrote off uncollectible receivables and made other adjustments as necessary (see below). At year-end,…
(Learning Objective 5: Apply GAAP for uncollectible receivables) The September 30,2019, records of West Point Communications include these accounts:Accounts Receivable.................................... $249,000Allowance for Doubtful Accounts............... (8,000)During the year, West Point Communications estimates Uncollectible-account expense at 1%of credit sales. At year-end (December 31), the company ages its receivables and adjusts thebalance in Allowance for Uncollectible Accounts to correspond to the following aging schedule:LO 5Age of Accounts1–30 Days 31–60 Days 61–90 Days Over 90 Days$132,000 $52,000 $15,000 $36,000Accounts Receivable$235,000Estimated percent uncollectible 0.5% 2% 15% 35%During the last quarter of 2019, the company completed the following selected transactions:Nov 30 Wrote o as uncollectible the $1,200 account receivable fromLooper Carpets and the $800 account receivable from Williams Antiques.Dec 31 Adjusted the Allowance for Uncollectible Accounts and…
(Learning Objectives 4, 5: Apply GAAP for receivables and uncollectiblereceivables) Suppose Easton, Inc., reported net receivables of $2,582 million and $2,260 millionat January 31, 2019, and 2018, respectively, after subtracting allowances of $72 million and $67million at these respective dates. Easton earned total revenue of $43,333 million (all on account)and recorded uncollectible-account expense of $13 million for the year ended January 31, 2019.Requirement1. Use this information to measure the following amounts for the year ended January 31, 2019:a. Write-offs of uncollectible receivables b. Collections from customers

Chapter 5 Solutions

Financial Accounting (12th Edition) (What's New in Accounting)

Ch. 5 - Refer to Question 10. Using the...Ch. 5 - Refer to Question 10. Using the...Ch. 5 - Accounts Receivable has a debit balance of 2,500,...Ch. 5 - Swan Corporation received a four-month, 8%, 1,650...Ch. 5 - What is the maturity value of a 30,000, 12%,...Ch. 5 - If the adjusting entry to accrue interest on a...Ch. 5 - Net credit sales total 1,264,800. Beginning and...Ch. 5 - From the following list of accounts, calculate the...Ch. 5 - Prob. 5.1ECCh. 5 - LO 1 (Learning Objective 1: Apply GAAP for proper...Ch. 5 - LO 1 (Learning Objective 1: Record a credit card...Ch. 5 - LO 1, 2 (Learning Objectives 1, 2: Apply GAAP for...Ch. 5 - Prob. 5.4SCh. 5 - (Learning Objective 3: Account for sales...Ch. 5 - (Learning Objective 4: Account for accounts...Ch. 5 - LO 5 (Learning Objective 5: Evaluate...Ch. 5 - LO 5 (Learning Objective 5: Evaluate...Ch. 5 - LO 6 (Learning Objective 6: Account for notes...Ch. 5 - LO 6 (Learning Objective 6: Account for notes...Ch. 5 - Prob. 5.11SCh. 5 - LO 7 (Learning Objective 7: Evaluate liquidity...Ch. 5 - LO 1, 2 (Learning Objectives 1, 2: Apply GAAP for...Ch. 5 - Prob. 5.14AECh. 5 - Prob. 5.15AECh. 5 - LO 1, 2, 3 (Learning Objectives 1, 2, 3: Apply...Ch. 5 - LO 4, 5 (Learning Objectives 4, 5; Account for...Ch. 5 - LO 5 (Learning Objective 5: Apply GAAP for...Ch. 5 - LO 4, 5 (Learning Objectives 4, 5: Account for...Ch. 5 - LO 5 (Learning Objective 5: Apply GAAP to...Ch. 5 - LO 5 (Learning Objective 5: Apply GAAP to...Ch. 5 - LO 6 (Learning Objective 6: Apply GAAP for notes...Ch. 5 - Prob. 5.23AECh. 5 - Prob. 5.24AECh. 5 - Prob. 5.25BECh. 5 - Prob. 5.26BECh. 5 - Prob. 5.27BECh. 5 - LO 1, 2, 3 (Learning Objectives 1, 2, 3: Apply...Ch. 5 - LO 4, 5 (Learning Objectives 4, 5: Account for...Ch. 5 - LO 5 (Learning Objective 5: Apply GAAP for...Ch. 5 - LO 4, 5 (Learning Objectives 4, 5: Account for...Ch. 5 - LO 5 (Learning Objective 5: Apply GAAP to...Ch. 5 - LO 5 (Learning Objective 5: Apply GAAP to...Ch. 5 - LO 6 (Learning Objective 6: Apply GAAP for notes...Ch. 5 - Prob. 5.35BECh. 5 - Prob. 5.36BECh. 5 - Fairmont Company has shipped goods to Willowbook...Ch. 5 - Prob. 5.38QCh. 5 - Prob. 5.39QCh. 5 - On April 3, a customer returned 600 of merchandise...Ch. 5 - Maple Grove Legal Association performs legal...Ch. 5 - Under the allowance method for uncollectible...Ch. 5 - Prob. 5.43QCh. 5 - Refer to Q5-43. The net receivables on the balance...Ch. 5 - Prob. 5.45QCh. 5 - Prob. 5.46QCh. 5 - Prob. 5.47QCh. 5 - Questions 5-48 through 5-51 use the following...Ch. 5 - Prob. 5.49QCh. 5 - Prob. 5.50QCh. 5 - Prob. 5.51QCh. 5 - Prob. 5.52QCh. 5 - A company with net credit sales of 960,000,...Ch. 5 - A company sells on credit terms of 2/10, n/30 and...Ch. 5 - (Learning Objectives 1, 2: Apply GAAP for proper...Ch. 5 - (Learning Objectives 1, 3: Apply GAAP for proper...Ch. 5 - (Learning Objectives 1, 4, 5, 6: Apply GAAP for...Ch. 5 - (Learning Objective 5: Apply GAAP for...Ch. 5 - (Learning Objectives 5, 7: Apply GAAP for...Ch. 5 - (Learning Objective 6: Apply GAAP for notes...Ch. 5 - Prob. 5.61APCh. 5 - (Learning Objectives 1, 2, 3, 4, 5: Apply GAAP for...Ch. 5 - (Learning Objectives 1, 2: Apply GAAP for proper...Ch. 5 - Prob. 5.64BPCh. 5 - Prob. 5.65BPCh. 5 - (Learning Objective 5: Apply GAAP for...Ch. 5 - Prob. 5.67BPCh. 5 - Prob. 5.68BPCh. 5 - (Learning Objectives 1, 7: Show how to speed up...Ch. 5 - (Learning Objectives 1, 2, 3, 4, 5: Apply GAAP for...Ch. 5 - Prob. 5.71CEPCh. 5 - Prob. 5.72CEPCh. 5 - Prob. 5.73CEPCh. 5 - Prob. 5.74SCCh. 5 - Prob. 5.75DCCh. 5 - Prob. 5.76DCCh. 5 - Strasburg Loan Company is in the consumer loan...Ch. 5 - Prob. 1FFCh. 5 - Focus on Analysis Under Armour, Inc. LO 1, 4, 7...
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The management of receivables Introduction - ACCA Financial Management (FM); Author: OpenTuition;https://www.youtube.com/watch?v=tLmePnbC3ZQ;License: Standard YouTube License, CC-BY