b. 8,275,000c. 7,725,000d. 7,875,000PART III. PROBILEM SOLVING. Answer what is being asked. Please show your solutions.1. Easy Company sells directly to retail customers. On January 1, 2020, the balance of theaccounts receivable was P2,070,000 while the allowance for doubtful accounts was a creditof P78,000. The following data are gathered.Credit SalesWriteoffsRecoveries22,000201711,100,00012,250,000)260,000295,000300,000201837,00036,000201914,650,00015,000,0002020310,00042,000Doubtful accounts are provided for as a percentage of credit sales. The entity calculatedthe percentage annually by using the experience of the three years prior to the current year.Required:a. What is the percentage of credit sales to be used in computing doubtful accountsexpense for 2020?b. What amount should be reported as doubtful expense for 2020?c. What amount should be reported as allowance for doubtful accounts on December 31,2020?CSScanned with CamScanner

Sales are of two types namely cash sales and credit sales. Credit sales refer to those sales on…

PART III. PROBILEM SOLVING. Answer what is being asked. Please show your solutions. 1. Easy Company sells directly to retail customers. On January 1, 2020, the balance of the accounts receivable was P2,070,000 while the allowance for doubtful accounts was a credit of P78,000. The following data are gathered. Credit Sales 1,100,000 Writeoffs Recoveries 22,000 37,000 36,000 42,000 2017 12,250,000 14,650,000 15,000,000 260,000 295,000 300,000 2018 2019 2020 310,000 Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. Required: a. What is the percentage of credit sales to be used in computing doubtful accounts expense for 2020? b. What amount should be reported as doubtful expense for 2020? c. What amount should be reported as allowance for doubtful accounts on December 31, 2020?

PART III. PROBILEM SOLVING. Answer what is being asked. Please show your solutions. 1. Easy Company sells directly to retail customers. On January 1, 2020, the balance of the accounts receivable was P2,070,000 while the allowance for doubtful accounts was a credit of P78,000. The following data are gathered. Credit Sales 1,100,000 Writeoffs Recoveries 22,000 37,000 36,000 42,000 2017 12,250,000 14,650,000 15,000,000 260,000 295,000 300,000 2018 2019 2020 310,000 Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. Required: a. What is the percentage of credit sales to be used in computing doubtful accounts expense for 2020? b. What amount should be reported as doubtful expense for 2020? c. What amount should be reported as allowance for doubtful accounts on December 31, 2020?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Attempt in Progress At December 1, 2022, Tamarisk, Inc. Accounts Receivable balance was $17470. During December, Tamarisk had credit sales of $46800 and collected accounts receivable of $37440. At December 31, 2022, the Accounts Receivable balance is O $64270 debit O $17470 debit O $26830 credit O $26830 debit Save for Later Attempts: 0 of 1 used Submit Answer
Can you also send me how to do this one? 2. Refer to the data below for XYZ Corporation. Credit sales during 2018 850,000 Accounts Receivable—January 1, 2018 334,000 Collections from credit customers during 2018 725,000 Estimated uncollectible accounts based on an aging analysis 13,200 Customer accounts written off as uncollectible during 2018 12,000 Allowance for doubtful accounts 1,700(after write-off of uncollectible accounts) Answer the following questions using the above data: A. What is the balance of Accounts Receivable at December 31, 2018? B. If the aging approach is used to estimate bad debts, what should the balance in Allowance for Doubtful Accountsbe after the bad debts adjustment? C. If the aging approach is used to estimate bad debts, what amount should be recorded as bed debts expense for2018?
36. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000Allowance for doubtful accounts, 1/1/22 28,600Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000Cash received from customers during the year 2,400,000Accounts written off during the year 17,600Cash refunds given to cash customers for sales returns and allowances 15,000Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and subsequent…
33. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000Allowance for doubtful accounts, 1/1/22 28,600Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000Cash received from customers during the year 2,400,000Accounts written off during the year 17,600Cash refunds given to cash customers for sales returns and allowances 15,000Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and subsequent…
55. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000Allowance for doubtful accounts, 1/1/22 28,600Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000Cash received from customers during the year 2,400,000Accounts written off during the year 17,600Cash refunds given to cash customers for sales returns and allowances 15,000Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and subsequent…
At what amount will accounts receivable for Anderson Company be reported on the balance sheet if the gross receivable balance is $52,000 and the allowance for doubtful accounts is estimated at 4% of gross receivables? Select one: A. $28,200 B. $49,920 C. $52,960 D. $47,000
What is the ending balance of the Allowance for doubtful receivables, given the following information: On January 1 2010, the Allowance for Doubtful Accounts of Alpha Inc. has a €10.500 credit balance and Accounts Receivable has a €150.000 debit balance. On December 31, some receivables are written down by €7.500 Answer: X
9. Which of the following is recorded upon receipt of a payment on April 7, 2021, by a customer who pays a $900 invoice dated March 3, 2021, with terms 2/10, n/60? A. Debit Sales Discounts $18. B. Credit Purchase Discounts $18. C. Credit Accounts Receivable $882. D. Debit Cash $900.
45. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000Allowance for doubtful accounts, 1/1/22 28,600Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000Cash received from customers during the year 2,400,000Accounts written off during the year 17,600Cash refunds given to cash customers for sales returns and allowances 15,000Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and subsequent…
Reproduced below from Farthington Supply’s accounting records is the accounts receivable subledger along with selected general ledger accounts. General Ledger Accounts Receivable Dec. 31/19 Balance 161,000 7,050 Jan. 4/20 Credit sales in 2020 ???? ???? Collections in 2020 14,500 July 15/20 Dec. 31/20 Balance ???? Allowance for Doubtful Accounts July 15/20 14,250 250 Dec. 31/19 Balance ???? Dec. 31/20 ???? Dec. 31/20 Balance Accounts Receivable Subledger JenStar Company Dec. 31/19 Balance 49,000 Nov. 15/20 ???? 49,000 Jan. 20/20 Dec. 31/20 Balance 106,500 Indigo Developments Dec. 31/19 Balance -0- Mar. 1/20 17,500 17,500 Mar. 20/20 Nov. 28/20 40,500 Dec. 2/20 4,250 Dec. 31/20 Balance 44,750 Lomas Industries Dec. 31/19 Balance ???? 7,050 Jan. 4/20 ???? Jan. 7/20 Apr. 21/20 53,500 53,500 May 5/20 Dec. 7/20 23,500 Dec. 31/20 Balance 23,500…
Reproduced below from Farthington Supply’s accounting records is the accounts receivable subledger along with selected general ledger accounts. General Ledger Accounts Receivable Dec. 31/19 Balance 161,000 7,050 Jan. 4/20 Credit sales in 2020 ???? ???? Collections in 2020 14,500 July 15/20 Dec. 31/20 Balance ???? Allowance for Doubtful Accounts July 15/20 14,250 250 Dec. 31/19 Balance ???? Dec. 31/20 ???? Dec. 31/20 Balance Accounts Receivable Subledger JenStar Company Dec. 31/19 Balance 49,000 Nov. 15/20 ???? 49,000 Jan. 20/20 Dec. 31/20 Balance 106,500 Indigo Developments Dec. 31/19 Balance -0- Mar. 1/20 17,500 17,500 Mar. 20/20 Nov. 28/20 40,500 Dec. 2/20 4,250 Dec. 31/20 Balance 44,750 Lomas Industries Dec. 31/19 Balance ???? 7,050 Jan. 4/20 ???? Jan. 7/20 Apr. 21/20 53,500 53,500 May 5/20 Dec. 7/20 23,500 Dec. 31/20 Balance 23,500…
Reproduced below from Farthington Supply’s accounting records is the accounts receivable subledger along with selected general ledger accounts. General Ledger Accounts Receivable Dec. 31/19 Balance 161,000 7,050 Jan. 4/20 Credit sales in 2020 ???? ???? Collections in 2020 14,500 July 15/20 Dec. 31/20 Balance ???? Allowance for Doubtful Accounts July 15/20 14,250 250 Dec. 31/19 Balance ???? Dec. 31/20 ???? Dec. 31/20 Balance Accounts Receivable Subledger JenStar Company Dec. 31/19 Balance 49,000 Nov. 15/20 ???? 49,000 Jan. 20/20 Dec. 31/20 Balance 106,500 Indigo Developments Dec. 31/19 Balance -0- Mar. 1/20 17,500 17,500 Mar. 20/20 Nov. 28/20 40,500 Dec. 2/20 4,250 Dec. 31/20 Balance 44,750 Lomas Industries Dec. 31/19 Balance ???? 7,050 Jan. 4/20 ???? Jan. 7/20 Apr. 21/20 53,500 53,500 May 5/20 Dec. 7/20 23,500 Dec. 31/20 Balance 23,500…