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Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 9.3P
Allowance for Uncollectible Accounts, Aging of Accounts Receivable, Write-Off. The partial balance sheets of Williams Iron Works, Inc follow
Description | 2019 | 2018 |
Accounts Receivable, Net of Allowances for Uncollectible Accounts of $362,600 and $225,000 for 2019 and 2018, Respectively | $8,702,400 | $475,000 |
Additional Information
- Net credit sales for 2019 amounted to $9,350,000.
- Cash collections for 2019 were $930,000.
Required
- a. Determine the amount of accounts receivable written off during 2019.
- b. Compute the amount of
bad debt expense recorded for 2019.
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1. Determine the receivables turnover ratio and days to collect for 2019.
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Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the receivables turnover ratio and days to collect for 2019. (Use 365 days in a year. Do not round intermediate
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Johnson Ltd. reported the following information on financial statements for the year ended December 31, 2019: Accounts receivable $3,001,000 Allowance for doubtful accounts 94,930 Bad debts expense 153,130 Assume all 2019 balance are normal balances. During 2020, the company had the following transactions related to receivables: 1. Sales were $26,421,000, of which $21,105,000 were on account. 2. Collections of accounts receivable were $19,762,000. 3. Writeoffs of accounts receivable were $102,800. 4. Recoveries of accounts previously written off as uncollectible were $21,100. (Note that this amount is not included in the collections referred to in item b above.
On December 31, 2019, Mills Manufacturing Ltd. had a $176,000 balance in its Accounts Receivable and a $10,000 balance in its Allowance for Doubtful Accounts. During 2020, the company made total sales of $955,000, of which $230,000 were cash sales. By the end of the year, Mills had received payments of $654,000 from its…
Chapter 9 Solutions
Intermediate Accounting (2nd Edition)
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