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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Accounts Receivable Calculations The following amounts were reported for Cotton, Newton, and Miller Companies:

Chapter 6, Problem 7E, Accounts Receivable Calculations The following amounts were reported for Cotton, Newton, and Miller

Required:

Next Level Compute the missing amounts.

To determine

Calculate the amounts that are missing.

Explanation

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Compute the missing amounts:

ParticularsCompany CCompany NCompany M
Accounts Receivable, 1/1/2019$502,300$282,100$128,500
Accounts Receivable, 12/31/2019(1) (a) $666,900311,000$152,700
Cash collections during the year$4,770,900$2,715,200 (3) (c) 1,546,900
Credit sales$4,935,500(2) (b) 2,744,100$1,571,100

Table (1)

Working note:

(1) Calculate the amount of ending accounts receivables for Company C:

Endingaccountsreceivables=[(Beginningaccountsreceivable+Creditsales)Cashcollectionsduringtheyear]=($502,300+$4,935,500)$4,770,900=$666,900

(2) Calculate the amount of credit sales for Co

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