Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Interpreting the Accounts Receivable FootnoteHewlett-Packard Company reports the following in its 2015 10-K report.
October 31(in millions)
2015
2014
Accounts receivable
$13,363
$13,832
Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts.
For the fiscal years ended October 31(in millions)
2015
2014
2013
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period
$232
$332
$464
Provision for doubtful accounts
46
25
23
Deductions, net of recoveries
(89)
(125)
(155)
Balance, end of period
$189
$232
$332
(a) What is the gross amount of accounts receivables for Hewlett-Packard in fiscal 2015 and 2014?
($ millions)
2015
2014
Gross accounts receivable
Answer?
Answer?
(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2015 and 2014? (Round your answers to two decimal places.)
($ millions)
2015
2014…
Interpreting the Accounts Receivable FootnoteHP Inc. reports the following in its 2018 10-K report.
October 31(in millions)
2018
2017
Accounts receivable
$5,113
$4,414
Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts.
For the fiscal years ended October 31(in millions)
2018
2017
2016
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period
$101
$107
$80
Provision for doubtful accounts
57
30
65
Deductions, net of recoveries
(29)
(36)
(38)
Balance, end of period
$129
$101
$107
(a) What is the gross amount of accounts receivables for HP in fiscal 2018 and 2017?
($ millions)
2018
2017
Gross accounts receivable
Answer
Answer
(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2018 and 2017? (Round your answers to two decimal places.)
($ millions)
2018
2017
Percentage of uncollectible…
12. J&Co has credit sale of OMR 900,00 for year 2017. On
December 31, 2017, the company's Allowance for doubtful
Accounts has a Zero balance. J&Co prepare a schedule of
its December 31, 2017, account receivable by age. On the
basis of past experience, it also estimate the percent of
receivable in each age category that will become
uncollectable. This information is summarized here:
Analysis of balances
Accounts
Age of
Receivable
Not due (Under 30days)
1 to 30 days past due
31 to 60 days past due
61-90 days past due
90-120 days past due
Over 120 days past due
Total
Amount %
399,600 2
287,800 10
180,000 15
6,000 20
10,000 40
16,600 100
OMR 900,000|
Required.
a. Compute the amount needed in the Allowance for
Doubtful Accounts at December 31, 2017, using the
aging of accounts receivable method.
b. Prepare the journal entry to record bad debts expense at
December 31, 2017.
Show how accounts receivable would be presented on the
Balance sheet at December
Chapter 7 Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Prob. 1QSCh. 7 - Solstice Company determines on October 1 that it...Ch. 7 - Solstice Company determines on October 1 that it...Ch. 7 - The following list describes aspects of either the...Ch. 7 - Gomez Corp. uses the allowance method to account...Ch. 7 - Prob. 6QSCh. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - Prob. 9QSCh. 7 - Prob. 10QSCh. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Accounts receivable subsidiary ledger; schedule of...Ch. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Percent of accounts receivable method P2 At each...Ch. 7 - Aging of receivables method P2 Daley Company...Ch. 7 - Percent of receivables method P2 Refer to the...Ch. 7 - Writing off receivables P2 Refer to the...Ch. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Notes receivable transactions P3 Refer to the...Ch. 7 - Prob. 12ECh. 7 - Prob. 13ECh. 7 - Prob. 14ECh. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Sales on account and credit card sales C1 Mayfair...Ch. 7 - Estimating and reporting bad debts P2 At December...Ch. 7 - Aging accounts receivable and accounting for bad...Ch. 7 - Prob. 4PSACh. 7 - Prob. 5PSACh. 7 - Prob. 1PSBCh. 7 - Prob. 2PSBCh. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Santana Rey, owner of Business Solutions, realizes...Ch. 7 - Comparative figures for Apple and Google follow....Ch. 7 - Anton Blair is the manager of a medium-size...Ch. 7 - As the accountant for Pure-Air Distributing, you...Ch. 7 - Access eBays February 6, 2015, filing of its 10-K...Ch. 7 - Prob. 7BTNCh. 7 - Prob. 9BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 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.arrow_forwardThe following information is taken from the 2015 annual report to shareholders of Herme-Finnet (HF) Company. For Fiscal 2015 For Fiscal 2014 $ 57 million $36 million Provision for doubtful accounts Accounts receivable, net Accounts receivable, gross Beginning Balance At Fiscal Year- end 2015 13,473 million 13,673 million Using a T-account for the allowance for doubtful accounts, identify the changes in the account during fiscal year 2015. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Ending Balance At Fiscal Year-end 2014 13,942 million 14, 185 million Allowance for Doubtful Accountsarrow_forwardAnalysis of Accounts Receivable and Allowance for Doubtful Accounts Steelcase, Inc. reported the following amounts in its 2014 and 2013 10-K reports (years ended February 28, 2014 and February 22, 2013). 2014 2013 ($ millions) From the income statement: Net sales From the balance sheet: Accounts receivable, net Customer deposits From the disclosure on allowance for doubtful accounts: Balance at beginning of period Additions (reductions) charged to income Adjustments or deductions Balance at end of period To write-off uncollectible accounts. a. Prepare the journal entry to record accounts receivable written off as uncollectible in 2014. Also prepare the entry to record the provision for doubtful accounts (bad debts expense) for 2014. Enter answers in millions (as shown above). General Journal Description ◆ ◆ To record the provision for doubtful accounts. 0 ♦ times $0 $3,089 $2,954 Debit 331.8 302.3 23.0 20.5 million 0 0 17.5 22.6 5.8 6.1 (3.3) 20.0 0 0 Gross accounts receivable (in…arrow_forward
- еBook Calculator 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. 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. Accounts Receivable written off $4 Accounts Receivable at 1/1/2019 ( Previous Next> Check My Work All work saved. Email Instructor Save and Exit Submit Assignment for Grading MacBook Pro CSearch or type URL %2# %$4 & 3 4 6 delete E T Y U J C V N command option Yevenut. opreahny Σ * 00arrow_forward1.The 2017 year-end balances of Accounts Receivable and Allowance for Doubtful Accounts are $1,000,000 and $100,000, respectively. Complete the net realizable value (net accounts receivable) presentation at 12/31/2017. Do not use decimals. account receivable ? less: allowance for doubtful accounts? net reallizable value? 2.Prepare the journal entry to record 2018 total sales: $3,000,000, of which $2,200,000 are on account. Do not use decimals. [Note: enter cash sales in the first line.] 3.Compute the net realizable value (net accounts receivable) presentation after the journal entry to record 2018 sales. Do not use decimals. 4.Prepare the journal entry to record $2,700,000 of accounts receivable collected in 2018. Do not use decimals. 5.Compute the net realizable value (net accounts receivable) presentation after the two journal entries to record 2018 sales and 2018 collections. Do not use decimals. 6.Prepare the journal entry to record $25,000 of write-offs in 2018. Do not use…arrow_forwardHow to calculate the total outstanding receivables?? For example if at the Dec 31 2013, total sales on account and invoiced during the year, the account receivable balance outstanding at the year end, the date when the invoice was issued and the date when the invoice was paid off was given!arrow_forward
- I need the answer on number 15 only. Thanks 1.The 2017 year-end balances of Accounts Receivable and Allowance for Doubtful Accounts are $1,000,000 and $100,000, respectively. Complete the net realizable value (net accounts receivable) presentation at 12/31/2017. Do not use decimals. 2.Prepare the journal entry to record 2018 total sales: $3,000,000, of which $2,200,000 are on account. Do not use decimals. [Note: enter cash sales in the first line.] 3.Compute the net realizable value (net accounts receivable) presentation after the journal entry to record 2018 sales. Do not use decimals. 4.Prepare the journal entry to record $2,700,000 of accounts receivable collected in 2018. Do not use decimals. 5.Compute the net realizable value (net accounts receivable) presentation after the two journal entries to record 2018 sales and 2018 collections. Do not use decimals. 6.Prepare the journal entry to record $25,000 of write-offs in 2018. Do not use decimals. 7.Compute the net realizable value…arrow_forwardThe following information is taken from the 2015 annual report to shareholders of Herme-Finnet (HF) Company. For Fiscal 2015 For Fiscal 2014 $60 million $ 39 million Provision for doubtful accounts Accounts receivable, net Accounts receivable, gross Beginning Balance At Fiscal Year- At Fiscal Year-end 2014 end 2015 Ending Balance 13,503 million 13,706 million Using a T-account for the allowance for doubtful accounts, identify the changes in the account during fiscal year 2015. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 13,972 million 14,218 million Allowance for Doubtful Accountsarrow_forwardAdditional information: 1. The company uses a perpetual system 2. The company uses control accounts for selling and administrative expenses. 3. The company records and posts its adjusting entries to its account only at year-end 4. Uncollectible accounts average 0.5% of net sales. 5. The P400K note receivable was received on March 1, 2019. The 6-month note carries an annual interest rate of 12%, the interest to be collected at the maturity date. 6. The balance in the prepaid insurance account represents payment made on January 1, 2019, for a 1-year comprehensive insurance policy. 7. The property and equipment account consists of land, P500K; buildings, P5.5M; and equipment, P2M. The buildings are depreciated over a 25-year life; the equipment over an 8-year life. Straight-line depreciation is used; residual value is disregarded. No acquisitions have made in 2019. The depreciation on the buildings is treated as an administrative expense; depreciation on the equipment as a selling…arrow_forward
- 1. Lovely Corporation's current liabilities at December 31, 2013 totalled P1,500,000 before any necessary year-end adjustment relating to the following transactions: On December 23, 2013, a vendor authorized Lovely to return for full credit, merchandise shipped and billed at P45,000 on December 09, 2013. Lovely shipped the returned items on December 29, 2013. A P45,000 credit memo was received and recorded by Lovely on January 02, 2014. During December 2013, Lovely received P75,000 from Pretty, a customer, as an advance payment for a handicraft that Lovely will make to Pretty's specifications. From this transaction, Lovely has a P75,000 credit balance in its accounts receivable from Pretty at December 31, 20oio. What amount should Lovely report as total current liabilities in its December 31, 2013 balance sheet? a. P1,455,000 b. P1,470,000 C. P1,530,000 d. P1,575,000arrow_forward5. Guernsey Company began operations on January 1, 2021. On December 31, 2021, the entity provided doubtful accounts based on 1% of annual credit sales. On January 1, 2022, the entity changed the method of determining the allowance for doubtful accounts by aging of accounts receivable. Days past invoice date Percent uncollectible 0 - 30 31 90 91 - 180 Over 180 1 5 20 80 In addition, the entity wrote off all accounts receivable that were over 1 year old. The entity provided the following additional information: 0 - 30 31 - 90 91 - 180 Over 180 Credit sales Collections, including recovery Accounts written off Recovery of accounts previously written off Days past invoice date at December 31 2022 2021 3,000,000 2,800,000 2,915,000 2,400,000 27,000 7,000 300,000 80,000 60,000 25,000 None None 250,000 90,000 45,000 15,000 a. What is the allowance for doubtful accounts on December 31, 2021? b. What is the allowance for doubtful accounts on December 31, 2022? c. What amount should be reported…arrow_forwardAccounts Receivable Free Company gathered the following information from its accounting records for the year ended December 31, 2019: • Net Credit Sales for the year - P680,000 • Accounts Receivable at December 31 - 92,000 • Allowance for doubtful accounts at December 31 - 1,850arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License