19) We have $600,000 of accounts receivable at end of first year (2022). We estimate that 3% willnot be collected.By 4/1/2023, we have collected $578,000 of the $600,000. In the chart below, make an entry on4/1/2023 that reflects a belief that the remaining AR will never be collected. Label columns.Apr 1,2023AcashERetainedearnings

The fundamental accounting equation states that the sum of equity and liability is always equal to…

Answered: 19) We have $600,000 of accounts…

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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Problem Solving. Raymar Alison Trading has the following transactions during the fiscal year 2021. Cash sales 100,0000. Credit Sales 200,000. Total Sales 300,000. Cost of Goods Sold 150,000. Gross Margin 150,000. Beg. Accounts Receivable 25,000. End. Accounts Receivable 15,000. Beg. Inventory 35,000. End. Inventory 25,000. Total Expenses 50,000. 29. What is Days Inventory Outstanding? (360 days) 18 24 36 72
An analysis and aging of Marigold Corp.’s accounts receivable at December 31, 2020, disclosed the following: Amounts estimated to be uncollectible $156,000 Accounts receivable 1,810,000 Allowance for doubtful accounts (per books) 140,000 What is the net realizable value of Marigold Corp.’s receivables at December 31, 2020? Net realizable val
Use the information provided below to prepare the following for January and February 2023:4.1 Debtors Collection Schedule INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are…
Nelto deposits $2,500 in a bank account that pays 3% interest compounded quarterly. Two years later, how much do they have in their bank account? C 1 t=0 n Cash Flow Diagram ….....…... Time Value of Money (TVM) Framework PV PMT FV type How to compute using Excel? -function( rate, nper, pmt, [PV]. [type]) n CPT
Apple Company determined that the net realizable value of its accounts receivable at December 31, 2020 based on aging of accounts receivable was P3,160,000. Additional information for 2020 is as follows: Allowance for doubtful accounts - Jan. 1 500,000 Accounts receivable - December 31 4,800,000 Doubtful accounts written off during the year 320,000 Doubtful accounts recovered during the year 70,000 What should be the doubtful accounts expense for 2020? 390,000 520,000 480,000 460,000
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21. Ebasan Company estimates its doubtful accounts by aging its accounts receivable. The aging schedule of accounts receivable at December 31, 2020 is presented below: Age of Accounts 0-30 days 31-60 days Amount P1,264,800 691,500 61-90 days 288,600 114,975 91-120 days Over 120 days 59,100 Ebasan's uncollectible accounts experience for the past 5 years are summarized in the following schedule: Year 0-30 31-60 61-90 91-120 Over 120 2019 Receivable (Dec 31) P1,968,750 1,500,000 697,500 0.3% 1.8% 12% 38% 65% 2018 0.5% 1.6% 41% 70% 2017 1.5% 0% 50% 69% 0.2% 0.4% 2016 1,224,000 1,7% 10.2% 47% 81% 2015 1,865,500 0.9% 2.0% 9.7% 33% 95% The balance of the allowance for doubtful accounts at December 31, 2020 before adjustment is P126,751. The necessary adjusting journal entry to adjust the allowance for doubtful accounts as of Dec 31,2020 would include: A. A debit to retained earnings of P13,894, B. A debit to doubtful accounts expense P140,644. C. A credit to doubtful accounts expense…
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Current Attempt in Progress * Your answer is incorrect. Crane Inc. has evaluated its process of calculating estimates of uncollectible accounts receivable. In the past, Crane calculated the Bad Debt Expense as a percentage of sales. It recorded Bad Debt Expense at 1% of sales. Due to changes in the economic conditions, Crane will increase that percentage to 3%. The change is made on January 1, 2025. Salles in 2023 were $1630000 and $3130000 in 2024. Sales in 2025 total $4130000. What is the Bad Debt Expense that Crane will record for 2025? $159100 Ⓒ $217800 O $41300 O $123900 e Textbook and Media Save for Later Attempts: 1 of 2 used Submit Answer
Wally has provided the information below – and asked you to create an Income Statement and Balance Sheet for AndrewCo for the year ended December 31, 2019. Sales were $1,200,000 Gross profit margin was 50% Operating margins were 10% The Bank of Toronto provided a loan on Jan 1, 2019 worth $300,000. The annual interest is 8% and is compounded annually. Interest only payments are needed – until the loan is due in 10 years, where a balloon payment for the full balance must be paid. The combined federal and provincial tax rates is 25% Wally knows that the ending cash balance in his company is 200,000. Accounts Receivables is 12% of sales Inventory is 15% of sales Accounts Payable is 5% of sales Accrued expenses payable is 5.5% of sales Capital equipment purchases were made at the start of the year. These total $50,000. These depreciate at 10% per year The owner will provide all other capital in the form of equity financing Wally has asked you to figure out his Selling General and…
12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. Yolandi’s management has estimated that $17,000 in accounts receivable would be uncollectible. Bad debt expense Allowance for doubtful accounts For the end of 2020, what is the company’s net realizable value?
A company currently has the following accounts: Cash: $7,000 Accounts Receivable (net): $11,000 Short-Term Investment: $3,000 Inventory: $3,000 Current Liabilities: $5,000 The company has just learned that a $4,000 accounts receivable will not be collectible. How will this change impact the current ratio? It will decrease from 4.8 to 4.0. It will increase from 4.2 to 5.0. It will decrease from 4.2 to 3.4. It will increase from 4.8 to 5.6.

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