(8 Problems 1) On January 1, 2021, Cali Consulting has a $110,000 balance in accounts receivable and a $0 balance in the Allowance for Uncollectible Accounts. During 2021, Cali provides $205,000 of service on account. The company collected $190,000 cash from Accounts Receivable. Uncollectible accounts are estimated to be 3% of sales on account. a. What is the amount of uncollectible accounts expense recognized in 2021? b. What is the amount of cash flows from Operating activities that would appear on the 2021 Cash Flow statement? Show the impact (with amounts) of each of the following items on the horizontal C. Oquation. For the asset section, name the specific accounts impacted. i. Record Sales during the year on account of $205,000. ii. Show the impact of $190,000 cash collected during the year. ii. Establish an Allowance for Uncollectible Accounts at year-end. 3. Study guide - Chapter 5 (with solutions).docx O A 69°F P. f5 f12 6J prt sc I14 &

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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(8
Problems
1) On January 1, 2021, Cali Consulting has a $110,000 balance in accounts receivable and a $0
balance in the Allowance for Uncollectible Accounts. During 2021, Cali provides $205,000 of
service on account. The company collected $190,000 cash from Accounts Receivable.
Uncollectible accounts are estimated to be 3% of sales on account.
a. What is the amount of uncollectible accounts expense recognized in 2021?
b. What is the amount of cash flows from Operating activities that would appear on the
2021 Cash Flow statement?
Show the impact (with amounts) of each of the following items on the horizontal
C.
Oquation. For the asset section, name the specific accounts impacted.
i. Record Sales during the year on account of $205,000.
ii. Show the impact of $190,000 cash collected during the year.
ii. Establish an Allowance for Uncollectible Accounts at year-end.
3.
Study guide - Chapter 5 (with solutions).docx
O A
69°F
P.
f5
f12
6J
prt sc
I14
&
Transcribed Image Text:(8 Problems 1) On January 1, 2021, Cali Consulting has a $110,000 balance in accounts receivable and a $0 balance in the Allowance for Uncollectible Accounts. During 2021, Cali provides $205,000 of service on account. The company collected $190,000 cash from Accounts Receivable. Uncollectible accounts are estimated to be 3% of sales on account. a. What is the amount of uncollectible accounts expense recognized in 2021? b. What is the amount of cash flows from Operating activities that would appear on the 2021 Cash Flow statement? Show the impact (with amounts) of each of the following items on the horizontal C. Oquation. For the asset section, name the specific accounts impacted. i. Record Sales during the year on account of $205,000. ii. Show the impact of $190,000 cash collected during the year. ii. Establish an Allowance for Uncollectible Accounts at year-end. 3. Study guide - Chapter 5 (with solutions).docx O A 69°F P. f5 f12 6J prt sc I14 &
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