Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833118
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 9.11P
| (in millions) | 2016 | 2015 |
| Net sales | $13,014 | $13,525 |
| Accounts receivable, net | 1,231 | 1,344 |
| Total assets | 15,111 | 15,251 |
Source Kellogg Company Annual Report, December 2016 http//investor.kelloggs.com/~/media/Files/K/Kellogg-IR/Annual%20Reports/kellogg-2016-ar-10-k.PDF
Required
- a. How is the carrying value of accounts receivable determined?
- b. What factors influence management's judgment in its estimate of the amount of collectible receivables'?
- c. What is the percent of trade receivables to total assets at the end of 2016 and 2015?
- d. What is the percent of the allowance for uncollectible accounts to total trade receivables in 2016 and 2015? (See Note 19 in 2016 Annual Report)
- e. What were Kellogg's write-offs of accounts receivable in 2016 and 2015? (See Note 19 in 2016 Annual Report)
SUPPLEMENTAL FINANCIAL STATEMENT DATA
| Consolidated |
2016 | 2015 |
| Trade receivables | $ 1,106 | $1,169 |
| Allowance for doubtful accounts | (8) | (8) |
| Refundable income taxes | 24 | 27 |
| Other receivables | 109 | 156 |
| Accounts receivable, net | $ 1.231 | $1,344 |
| Allowance for doubtful accounts (millions) | 2016 | 2015 | 2014 |
| Balance at beginning of year | $ 8 | $ 7 | $ 5 |
| Additions charged to expense | 9 | 4 | 6 |
| Doubtful accounts charged to reserve | (9) | (3) | (4) |
| Balance at end of year | $ 8 | $ 8 | $ 7 |
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Students have asked these similar questions
2. Using the following select financial statement information from Black Water Industries, compute the accounts
receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a
potential investor about Black Water Industries?
Year
2017
2018
2019
BLACK WATER INDUSTRIES
Net Credit Sales
$685,430
700,290
768,500
Ending Accounts Receivable
$330,250
360,450
401,650
The data depicted in the table below were extracted from the annual financial reports of
WBE enterprises for the 2021 and 2022 financial years.
If all purchases are on credit, calculate the creditors payment period of WBE enterprises for
the 2022 financial year.
Sales (80% credit sales)
Cost of sales
Inventories
Accounts receivable
Accounts payable
Cash and cash equivalents
Other current liabilities
OA. 214 days
OB. 163 days
OC. 66 days
OD. 168 days
2022
R
480 000
264 000
270 000
204 000
177 000
45 750
82 500
2021
R
375 000
192 000
243 000
183 000
165 000
27 300
58 500
The following information is taken Aiello Corporation's fiscal 2016 annual report.
Selected Balance Sheet Data 2016 2015 Inventories........................ $221,418 $226,893 Accounts Receivable........... $121,333 $122,087
Assume that Aiello Corporation had $1,003,881 sales on credit during fiscal year 2016. What amount did the company collect from credit customers during the year?
a. $1,003,881 b. $1,004,635 c. $1,003,127 d. $1,247,301
Chapter 9 Solutions
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
Ch. 9 - Prob. 9.1QCh. 9 - Do companies always classify cash as a current...Ch. 9 - Prob. 9.3QCh. 9 - Do accountants typically measure accounts...Ch. 9 - Under the allowance method, will the actual...Ch. 9 - How does an entity record a subsequent recovery of...Ch. 9 - Does the aging of accounts receivable method of...Ch. 9 - What is the difference between pledging accounts...Ch. 9 - How do companies account for receivables that are...Ch. 9 - Is the face value of a note receivable exchanged...
Ch. 9 - What do firms use to record the sales value of a...Ch. 9 - Explain why a company must have highly effective...Ch. 9 - The following are held by YRT Corporation at...Ch. 9 - Fernandez Company had an accounts receivable...Ch. 9 - On its December 31, Year 2, balance sheet, Red...Ch. 9 - Stanberry Company sold 500,000 of net accounts...Ch. 9 - On November 30, Year 1, Derin Corporation agreed...Ch. 9 - Which of the following disclosures about accounts...Ch. 9 - Prob. 9.1BECh. 9 - Prob. 9.2BECh. 9 - Prob. 9.3BECh. 9 - Prob. 9.4BECh. 9 - Prob. 9.5BECh. 9 - Sales Discounts, Most-Likely-Amount Method. On...Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Recovery....Ch. 9 - Bad Debt Expense, Journal Entry. Paul Anchor...Ch. 9 - Bad Debt Expense. Journal Entry. Paul Anchor,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.14BECh. 9 - Prob. 9.15BECh. 9 - Assigned Receivables. Using the information...Ch. 9 - Factoring Receivables without Recourse. Nicks...Ch. 9 - Prob. 9.18BECh. 9 - Notes Receivable. Welk Associates sold a piece of...Ch. 9 - Prob. 9.20BECh. 9 - Prob. 9.21BECh. 9 - Prob. 9.22BECh. 9 - Internal Controls. Identify whether the following...Ch. 9 - Prob. 9.24BECh. 9 - Prob. 9.25BECh. 9 - Prob. 9.26BECh. 9 - Prob. 9.27BECh. 9 - Prob. 9.28BECh. 9 - Prob. 9.1ECh. 9 - Volume Discounts, Sales Discounts. Sodesta Company...Ch. 9 - Allowance for Uncollectible Accounts, Journal...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Bad Debt Expense, Write-Offs, Journal Entry....Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Percentage of Accounts...Ch. 9 - Prob. 9.9ECh. 9 - Assigning Receivables, Factoring Receivables....Ch. 9 - Prob. 9.11ECh. 9 - Factoring Receivables with and without Recourse....Ch. 9 - Factoring Receivables without Recourse, Factoring...Ch. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Notes Receivable with Year-End Interest Accrual,...Ch. 9 - Prob. 9.18ECh. 9 - Allowance for Uncollectible Accounts, Journal...Ch. 9 - Prob. 9.2PCh. 9 - Allowance for Uncollectible Accounts, Aging of...Ch. 9 - Prob. 9.4PCh. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.7PCh. 9 - Prob. 9.8PCh. 9 - Aging of Accounts Receivable, Write-Offs,...Ch. 9 - Disclosure. Using the transactions listed in P9-9,...Ch. 9 - Accounts Receivable Disclosure. Using Kellogg...Ch. 9 - Prob. 1JCCh. 9 - Financial Statement Analysis Case: Revlon The...Ch. 9 - Prob. 1SSCCh. 9 - Surfing the Standards Case 2: Costs Associated...Ch. 9 - Prob. 1BCC
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