4. KK Co. normally takes 30 days to pay for its average daily credit purchases of P2,000. Its average daily sales areP3,000, and it collects accounts in 25 days. What is its net credit position? (Note that a negative position impliesreceivables exceed payables.)A. P1,000B. (P1,000)C. P15,000D. (P15,000)5. A firm is offered trade credit terms of 3/15, net 45 days. The firm does not take the discount, and it pays after 67 days.What is the nominal annual cost of not taking the discount? (Assume a 365-day year.)A. 21.71%B. 22.07%C. 22.95%E. 24,52%D. 23.48%6. GFB Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30 days after the invoicedate. Net purchases amount to P730,000 per year. On average, how much "free" trade credit does GFB Co. receiveduring the year? (Assume a 365-day year.)А. Р30,000С. Р50,000E. P70,000B. P40,000D. P60,000

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4. KK Co. normally takes 30 days to pay for its average daily credit purchases of P2,000. Its average daily sales are P3,000, and it collects accounts in 25 days. What is its net credit position? (Note that a negative position implies receivables exceed payables.) A. P1,000 C. P15,000 D. (P15,000) B. (P1,000)

4. KK Co. normally takes 30 days to pay for its average daily credit purchases of P2,000. Its average daily sales are P3,000, and it collects accounts in 25 days. What is its net credit position? (Note that a negative position implies receivables exceed payables.) A. P1,000 C. P15,000 D. (P15,000) B. (P1,000)

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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A. Suzie estimates uncollectible accounts to be 10% of accounts receivable (which does not include the $6,000 note receivable from Myers Manufacturing). Prepare the adjusting entry for uncollectible accounts. B. Accrue one month of interest on the note receivable from Myers Manufacturing. C. Prepare a partial balance sheet showing the net accounts receivable section.
Am. 361.
Bb.43.
Dd.5.
None
QUESTION 1 Information about Calbee Company is provided below: Ending Accounts Receivable: $100,000 Total Credit Sales: $250,000 Beginning Allowance for Doubtful Accounts: $15,000 (Credit) Total Write-offs: $5.000 Calbee uses the percent of credit sales method. It estimates that 3% of credit sales will ultimately be uncollectible. What is the ending balance in the Allowance for Doubtful Accounts?
8. Alladin Corporation uses the allowance method in estimating uncollectibles. At the end of the year, Alladin Corporation estimates that 2% of its credit sales of $1,000,000 will be uncollectible. Allowance for Doubtful Accounts has a credit balance of $1,000 before adjustment. What is the amount of the adjusting entry? a. $20,000 b. $21,000 c. $22,000 d. $19,000
The contra revenue account that represents the reduction in the amount paid by a credit customer if payment is made within a specified period of time is known as which of the following: O Contra revenue account O Sales allowance account O Sales discount account O Allowance for uncollectible accounts ASUS f3 f4 f5 f6 f7 f8 f9 f10 f11 区ロ/京 %24 & 3 4. 7. 8 9. 01 Y U G H. J K 16 5 图

1 Required: Complete the following table by computing the missing amounts for the following independent cases. (Do not round intermediate calculations. Round "Annual Interest Rate" to 1 decimal place.) Principal Amount on Notes Annual Interest Time Period Rate Interest Earned Receivable ok a S 65,000 11.4 % 6 months b. $ 43,000 % 9 months $ 3,483 C. 9.3 % 12 months $ 3,069 nces
question b: (...) amount in accounts receivable?
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Company X sells on a 2/15, net 60, basis. Company Y buys goods with an invoice of $4,500. a. How much can company Y deduct from the bill if it pays on day 15? (Do not round intermediate calculations.) b. How many extra days of credit can company Y receive if it passes up the cash discount? c. What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)