receivable of $747,981,000 and allowance for doubtful accounts of $90,775,000. Johnson & Johnson manufactures and sells a wide range of health care products including Band- Aid® bandages and Tylenol®. As of a recent year, Johnson & Johnson reported accounts a. Compute the percentage of the allowance for doubtful accounts to the accounts accounts Aid® bandages and Tylenol®. As of a recent year, Johnson & Johnson reported accond- receivable of $14,346,000,000 and allowance for doubtful accounts of $248,000.000 a. Compute the percentage of the allowance for doubtful accounts to the aces receivable for MGM Resorts International. Round to one decimal place. b. Compute the percentage of the allowance for doubtful accounts to the accous receivable for Johnson & Johnson. Round to one decimal place. C. Discuss possible reasons for the difference in the two ratios computed :- (a) and (b). EX 9-3 Entries for uncollectible accounts, using direct write-off method OBJ. 3 Journalize the following transactions in the accounts of Arrow Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables: Jan. 19. Sold merchandise on account to Dr. Sinclair Welby, $77,000. The cost of the merchandise sold was $52,600. July 7. Received $30,800 from Dr. Sinclair Welby and wrote off the remainder owed on the sale of January 19 as uncollectible. Nov. 2. Reinstated the account of Dr. Sinclair Welby that had been written off on July 7 and received $46,200 cash in full payment. OBJ. 4 EX 9-4 Entries for uncollectible receivables, using allowance method Journalize the following transactions in the accounts of Arizona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: Taiwan Polace Co *25 800 The cost of the
receivable of $747,981,000 and allowance for doubtful accounts of $90,775,000. Johnson & Johnson manufactures and sells a wide range of health care products including Band- Aid® bandages and Tylenol®. As of a recent year, Johnson & Johnson reported accounts a. Compute the percentage of the allowance for doubtful accounts to the accounts accounts Aid® bandages and Tylenol®. As of a recent year, Johnson & Johnson reported accond- receivable of $14,346,000,000 and allowance for doubtful accounts of $248,000.000 a. Compute the percentage of the allowance for doubtful accounts to the aces receivable for MGM Resorts International. Round to one decimal place. b. Compute the percentage of the allowance for doubtful accounts to the accous receivable for Johnson & Johnson. Round to one decimal place. C. Discuss possible reasons for the difference in the two ratios computed :- (a) and (b). EX 9-3 Entries for uncollectible accounts, using direct write-off method OBJ. 3 Journalize the following transactions in the accounts of Arrow Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables: Jan. 19. Sold merchandise on account to Dr. Sinclair Welby, $77,000. The cost of the merchandise sold was $52,600. July 7. Received $30,800 from Dr. Sinclair Welby and wrote off the remainder owed on the sale of January 19 as uncollectible. Nov. 2. Reinstated the account of Dr. Sinclair Welby that had been written off on July 7 and received $46,200 cash in full payment. OBJ. 4 EX 9-4 Entries for uncollectible receivables, using allowance method Journalize the following transactions in the accounts of Arizona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: Taiwan Polace Co *25 800 The cost of the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
EX 9-3
Transcribed Image Text:receivable of $747,981,000 and allowance for doubtful accounts of $90,775,000. Johnson &
Johnson manufactures and sells a wide range of health care products including Band-
Aid® bandages and Tylenol®. As of a recent year, Johnson & Johnson reported accounts
a. Compute the percentage of the allowance for doubtful accounts to the accounts
accounts
Aid® bandages and Tylenol®. As of a recent year, Johnson & Johnson reported accond-
receivable of $14,346,000,000 and allowance for doubtful accounts of $248,000.000
a. Compute the percentage of the allowance for doubtful accounts to the aces
receivable for MGM Resorts International. Round to one decimal place.
b. Compute the percentage of the allowance for doubtful accounts to the accous
receivable for Johnson & Johnson. Round to one decimal place.
C.
Discuss possible reasons for the difference in the two ratios computed :-
(a) and (b).
EX 9-3 Entries for uncollectible accounts, using direct write-off method
OBJ. 3
Journalize the following transactions in the accounts of Arrow Medical Co., a medical
equipment company that uses the direct write-off method of accounting for uncollectible
receivables:
Jan. 19. Sold merchandise on account to Dr. Sinclair Welby, $77,000. The cost of the
merchandise sold was $52,600.
July 7. Received $30,800 from Dr. Sinclair Welby and wrote off the remainder owed on
the sale of January 19 as uncollectible.
Nov. 2. Reinstated the account of Dr. Sinclair Welby that had been written off on July 7
and received $46,200 cash in full payment.
OBJ. 4
EX 9-4 Entries for uncollectible receivables, using allowance method
Journalize the following transactions in the accounts of Arizona Interiors Company, a
restaurant supply company that uses the allowance method of accounting for uncollectible
receivables:
Taiwan Polace Co
*25 800 The cost of the
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