Analysis of Accounts Receivable and Allowance for Doubtful Accounts (FSET) Steelcase, Inc., reported the following amounts in its 2020 and 2019 10-K reports (years ended February 28, 2020, and February 22, 2019). ($ millions) 2020 2019 From the income statement: Revenue From the balance sheet: Accounts receivable, net Customer deposits From the disclosure on allowance for doubtful accounts: Balance at beginning of period Additions (reductions) charged to income Adjustments or deductions Balance at end of period Transaction 1. Write-off of uncollectible accounts. 2. Recognize bad debts expense. Cash Asset Gross receivables Allowance as a % of gross receivables 0 $3,723.70 $3,443.20 372.4 28.6 a. Report (1) the write-off of accounts receivable as uncollectible in 2020 and (2) the provision for doubtful accounts (bad debt expense) for 2020 using the financial statement effects template. Note: Use a negative sign with your answers, when appropriate. 0x 0% x 8.7 7.3 (6.6) 9.4 Noncash Assets 390.3 20 0 x 0✓ 11.1 5.5 (7.9) 8.7 0x 0% x Balance Sheet Contra Assets 0x= 0 x Liabilities 0 0+ 0✓ Contributed Capital 0+ 0 Earned Capital 0✓ 0x Revenues 0 b. Calculate Steelcase's gross receivables for the years given, and then determine the allowance for doubtful accounts as a percentage of the gross receivables. Note: Round Allowance as a % of gross receivables answers to two decimal places. 2020 2019 Income Statement Expenses 0 0 x Net Income 0✔ 0 x
Analysis of Accounts Receivable and Allowance for Doubtful Accounts (FSET) Steelcase, Inc., reported the following amounts in its 2020 and 2019 10-K reports (years ended February 28, 2020, and February 22, 2019). ($ millions) 2020 2019 From the income statement: Revenue From the balance sheet: Accounts receivable, net Customer deposits From the disclosure on allowance for doubtful accounts: Balance at beginning of period Additions (reductions) charged to income Adjustments or deductions Balance at end of period Transaction 1. Write-off of uncollectible accounts. 2. Recognize bad debts expense. Cash Asset Gross receivables Allowance as a % of gross receivables 0 $3,723.70 $3,443.20 372.4 28.6 a. Report (1) the write-off of accounts receivable as uncollectible in 2020 and (2) the provision for doubtful accounts (bad debt expense) for 2020 using the financial statement effects template. Note: Use a negative sign with your answers, when appropriate. 0x 0% x 8.7 7.3 (6.6) 9.4 Noncash Assets 390.3 20 0 x 0✓ 11.1 5.5 (7.9) 8.7 0x 0% x Balance Sheet Contra Assets 0x= 0 x Liabilities 0 0+ 0✓ Contributed Capital 0+ 0 Earned Capital 0✓ 0x Revenues 0 b. Calculate Steelcase's gross receivables for the years given, and then determine the allowance for doubtful accounts as a percentage of the gross receivables. Note: Round Allowance as a % of gross receivables answers to two decimal places. 2020 2019 Income Statement Expenses 0 0 x Net Income 0✔ 0 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:Analysis of Accounts Receivable and Allowance for Doubtful Accounts (FSET)
Steelcase, Inc., reported the following amounts in its 2020 and 2019 10-K reports (years ended February 28, 2020, and February 22, 2019).
($ millions)
2020
2019
From the income statement:
Revenue
From the balance sheet:
Accounts receivable, net
Customer deposits
From the disclosure on allowance for doubtful accounts:
Balance at beginning of period
Additions (reductions) charged to income
Adjustments or deductions.
Balance at end of period
Transaction
1. Write-off of uncollectible accounts.
2. Recognize bad debts expense.
Cash
Asset
Gross receivables
Allowance as a % of gross receivables
a. Report (1) the write-off of accounts receivable as uncollectible in 2020 and (2) the provision for doubtful accounts (bad debt expense) for 2020 using the financial statement effects template.
Note: Use a negative sign with your answers, when appropriate.
0
2020
$3,723.70 $3,443.20
372.4
28.6
0 x
0% *
8.7
7.3
(6.6)
9.4
Noncash
Assets
390.3
20
11.1
5.5
(7.9)
8.7
0x -
0✔ -
0 x
0% *
Balance Sheet
Contra
Assets
0 x
0x =
Liabilities
0
0 ✓
Contributed
Capital
0✔ +
0 +
Earned
Capital
0✔
0 x
Revenues
b. Calculate Steelcase's gross receivables for the years given, and then determine the allowance for doubtful accounts as a percentage of the gross receivables.
Note: Round Allowance as a % of gross receivables answers to two decimal places.
2019
0✔
0
Income Statement
Expenses
0✓ =
0x =
Net
Income
0✔
0 x
Transcribed Image Text:c. Calculate Steelcase's accounts receivable turnover for 2020. (Use Accounts receivable, net for the calculation.)
Note: Round answer to two decimal places.
0
x times.
d. How much cash did Steelcase receive from customers in 2020? $ 3,723.7 X
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