Concept explainers
Note receivable:
Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable is an asset of a business.
Interest on note:
Interest on note is the amount charged on the principal value of note for the privilege of borrowing money. Interest is to be paid by the borrower and to be received by the lender.
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.
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FINANCIAL AND MANAGERIAL ACCOUNTING
- eceivables in the Balance Sheet The following partial balance sheet contains errors. ZABEL COMPANYBalance SheetDecember 31, 20Y4 Assets Current assets: Cash $76,000 Notes receivable $117,500 Less interest receivable 9,300 108,200 Account receivable $477,000 Plus allowance for doubtful accounts 21,750 498,750 Prepare a corrected partial balance sheet for Zabel Company.arrow_forwardQUESTION 1 On December 31, 2018, Ava Company had an ending balance of $5864 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $160.Ava estimates uncollectible accounts expense to be 9% of receivables. Based on this information, the amount of net realizable accounts receivable shown on the 2018 balance sheet is $arrow_forwardWhat is the amount of write offs during Year 2 based on the following financial information? Balance Sheet Excerpts As At Year Year 2 Year 1 End(000s) Gross Accts Receivable Allowance for Doubtful Accounts Net Accts Receivable Provision for Bad Debt O $15 $20 $37 $52 $456 $20 $437 $25 $321 $32 $294 $40arrow_forward
- Current Attempt in Progress Wildhorse Company has accounts receivable of $101,200 at March 31, 2022 Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,300 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Transcribed Text (a) 2022 Balance, March 31 $61,600 22,100 8,600 8,900 2021 $75,000 Total estimated uncollectibles 8,000 2,400 1,100 $101.200 $86,500 Estimated Percentage Uncollectible 3% 5% 23% 50% c Determine the total estimated uncollectibles at March 31, 2022.arrow_forwardInterpreting 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…arrow_forwardEstimating Bad Debts from Receivables Balances Instructionss Chart of Accounts General Journal Balance Sheet Analysis IFRS Instructions The following information is extracted from Shelton Corporation's accounting records at the beginning of 2016: Accounts Receivable $67,000 Allowance for Doubtful Accounts 1,300 (credit) During 2016, sales on credit amounted to $582,000, $552,800 was collected on outstanding receivables and $2,600 of receivables were written off as uncollectible. On December 31, 2016, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance. Required: 1. Prepare the journal entry necessary to record Shelton's estimate of bad debt expense for 2016. 2. Prepare the Accounts Receivable section of Shelton's December 31, 2016, balance sheet. 3. Compute Shelton's receivables turnover. (Round to one decimal place.) 4. If Sheldon uses IFRS, what might be the heading for the accounts receivable section Requirement 2?arrow_forward
- Current Attempt in Progress The current assets and current liabilities sections of the balance sheet of TealCompany appear as follows. TEAL COMPANYBALANCE SHEET (PARTIAL)DECEMBER 31, 2020 Cash $ 41,700 Accounts payable $ 65,040 Accounts receivable $96,400 Notes payable 70,200 Less: Allowance for doubtful accounts 7,080 89,320 $135,240 Inventory 177,510 Prepaid expenses 8,980 $317,510 The following errors in the corporation’s accounting have been discovered: 1. January 2021 cash disbursements entered as of December 2020 included payments of accounts payable in the amount of $43,500, on which a cash discount of 2% was taken. 2. The inventory included $31,970 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,290 had been received on consignment; the remainder was purchased f.o.b.…arrow_forwardCurrent Attempt in Progress Wildhorse Company has accounts receivable of $101,200 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,300 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Balance, Estimated Percentage Age of Accounts March 31 Uncollectible 2022 2021 Current $61,600 $75,000 3% 1-30 days past due 22,100 8,000 5% 31-90 days past due 8,600 2,400 23% Over 90 days past due 8,900 1,100 50% $101.200 $86,500 e the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented when is entered. Do not indent manually.) Account Titles and Explanation Debit Credit 1300 31 Bad Debt Expense 1300 Allowance for Doubtful Accounts Textbook and Mediaarrow_forwardtermediate Accounting 1.docx Open with Google Docs For Nos. 20-21 Nabangst Corporation reported the following recelvables on December 31, 2018: Accounts recelvable, net of P520,000 allowance for doubtful accounts Interest receivable P3,840,000 190,000 4,000,000 Notes receivable Additional Information: The notes recelvable comprised of the following: P3,000,000 note dated March 31, 2018, with principal and 8% interest payable on March 31, 2019. P1,000,000 note dated October 31, 2018, with principal and interest payable on October 31, 2019. During 2019, sales revenue totaled P21,200,000, cash collected from customers amounted to P19,800,000, and P410,000 in accounts receivable were written off. All sales are made on credit basis. Doubtful accounts expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. 20. What amount should be reported as interest income for 2019? P240,000 d. P110,000 a. P80,000 C. b. P60,000 21. What…arrow_forward
- PROBLEM SOLVING: Accounts Receivables 2-1 Presented below are unaudited balances of selected accounts of YELLOW Company as of December 31, 2020: Unaudited Bal, 12/31/20 Debit 500,000 1,300,000 8,000 Selected Accounts Credit Cash Accounts receivable Allowance for bad debts Net sales 6,750,000 Additional information are as follows: • Goods amounting to P50,000 were invoiced for the accounts of UNO Store, recorded on January 2, 2021 with terms n/60, FOB shipping point. The goods were shipped to UNO on December 30, 2020. The bank returned on December 29, 2020, a customer's check for P15,000 marked "NSF", but no entry was made. Goods amounting to P38,000, invoiced for the account of DOS Trading, recorded on December 27, 2020, FOB Destination. The goods were received by DOS on January 3, 2021 After a careful study of YELLOW's past due accounts, it was necessary to write off uncollectible accounts amounting to P25,000. No entry was made yet for this. YELLOW estimates that allowance for bad…arrow_forwardI NEED HELP FINDING THE DOLLAR AMOUNT Vaughn Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable 331,400 104,000 70,800 65,400 49,100 $42,100 % uncollectible 2% 5% 6% 9% 21% Estimated Bad debts $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amountarrow_forward(c) What is the balance of accounts receivable on it December 31 balance sheet? Estimating Uncollectible Accounts and Reporting Accounts ReceivableLaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss % 0-30 days past due $ 180,000 1% 31-60 days past due 40,000 2 61-120 days past due 22,000 5 121-180 12,000 10 Over 180 days past due 8,000 25 Total accounts receivable $ 262,000arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College