1.
Concept Introduction:
The number of gross accounts receivable due from customers at the end of 2017 and 2016.
2.
Concept Introduction: Accounts receivable are created when an entity sells goods or services on credit. Most businesses provide credit to customers. Some of the accounts receivable are considered uncollectible due to various reasons. These uncollectible are recognized as bad debts.
The number of bad debt write-offs during 2017.
3.
Concept Introduction: Accounts receivable are created when an entity sells goods or services on credit. Most businesses provide credit to customers. Some of the accounts receivable are considered uncollectible due to various reasons. These uncollectible are recognized as bad debts.
The amount of cash received for 2017 using gross accounts receivable.
4.
Concept Introduction: Accounts receivable are created when an entity sells goods or services on credit. Most businesses provide credit to customers. Some of the accounts receivable are considered uncollectible due to various reasons. These uncollectible are recognized as bad debts.
The change in net accounts receivable to calculate cash received from customers.
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INTERMEDIATE ACCOUNTING VOL 1&2 CONNECT
- 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.arrow_forwardWhat information can best be elicited from a receivable ratio? A. company performance with current debt collection B. credit extension effect on cash sales C. likelihood of future customer bankruptcy filings D. an increase in future credit sales to current customersarrow_forwardUse the following excerpts from Brownstone Companys financial statements to determine cash received from customers in 2018.arrow_forward
- Use the following excerpts from Algona Companys financial statements to determine cash received from customers in 2018.arrow_forwardRequirements: 1. How much from the total collections were not able to avail of any of the cash discounts? 2. What is the net sales of the entity for 2016? 3. What is the adjusted balance of the Accounts Receivable account as of December 31, 2016?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
- What is the adjusted balance of Accounts Receivable on December 31, 2017? A. 1,315,000 B. 1,335,000 C. 1,350,000 D. 1,365,0005. What is the adjusted amount of 2017 bad debts expense? A. 12,475 B. 28,025 C. 28,250 D. 28,475arrow_forwardThe 2016 financial statements of Leggett & Platt, Inc. include the following information in a footnote. What are the company’s current gross accounts and other receivables at the end of 2016? (in millions) 2016 2015 Allowance for doubtful accounts $7.2 $9.3 Total accounts and other receivables, net $486.6 $520.2 Group of answer choices $493.8 million $452 million $479.4 million $486.6 millionarrow_forwardWhat is the carrying value of accounts receivable as of December 31, 2016?arrow_forward
- ST&C's financial statements for the 2015 and 2014 fiscal years contained the following information: Balance Sheets ($ in millions) 2015 2014 Current assets: Accounts receivable, net of allowances for doubtful accounts of $724 and $654 $ 16,732 $ 14,547 Income Statements ($ in millions) 2015 2014 Revenues $ 148,801 $ 132,667 In addition, the statement of cash flows disclosed bad debt expense of $1,436 million in 2015 and $1,052 million in 2014. Required: Determine the amount of actual bad debt write-offs made during 2015. Note: Enter your answer in millions and not in dollars. Determine the amount of cash collected from customers during 2015. Note: Enter your answer in millions and not in dollars. Compute the receivables turnover ratio for 2015. Note: Round your answer to 2 decimal places.arrow_forwardDuncan Corporation began 2018 with a balance in Accounts Receivable of $500,000.Service revenue, all on account, for the year totaled $2,600,000. The company ended theyear with a balance in Accounts Receivable of $700,000. Duncan’s bad-debt write-offs arenonexistent. How much cash did the company collect from customers in 2018?a. $3,300,000b. $2,600,000c. $2,800,000d. $2,400,000arrow_forwardSuppose the following information was taken from the 2017 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions) 2017 2016 Accounts receivable (gross) $ 3,302 $ 4,396 Accounts receivable (net) 3,273 4,367 Allowance for doubtful accounts 29 29 Sales revenue 32,226 39,472 Total current assets 6,758 6,532 Answer each of the following questions. (a) Calculate the accounts receivable turnover and the average collection period for 2017 for FedEx Corporation. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning