Analysis of Accounts Receivable and Allowance for Doubtful Accounts Steelcase, Inc. reported the following amounts in its 2018 and 2017 10-K reports (years ended February 23, 2018, and February 24, 2017). 2018 2017 ($ millions) 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 Description Allowance for doubtful accounts Accounts receivable To write-off uncollectible accounts. Provision for doubtful accounts ÷ ÷ $3,055.5 $3,032.4 Allowance for doubtful accounts ÷ To record the provision for doubtful accounts. a. Prepare the journal entry to record accounts receivable written off as uncollectible in 2018. Also prepare the entry to record the provision for doubtful accounts (bad debts expense) for 2018. Enter answers in millions (as shown above). General Journal 300.3 307.6 28.2 15.9 Debit 11.2 2.5 (2.6) 11.1 2.6 ✔ 0✓ 2.5 ✓ 0✓ 11.7 Gross accounts receivable (in millions) Allowance as a % of gross receivables (Round to one decimal place.) 4.5 (5.0) 11.2 Credit $ 0 2.6✓ 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. 0✓ 2.5 ✓ 2018 311.4✓ $ 3.6% ✓ 2017 318.8 3.5% c. Calculate Steelcase's accounts receivable turnover for 2018. (Use Accounts receivable, net for the calculation.) Round answer to one decimal place. 10.1 times d. How much cash did Steelcase receive from customers in 2018? $ 3,060 x million
Analysis of Accounts Receivable and Allowance for Doubtful Accounts Steelcase, Inc. reported the following amounts in its 2018 and 2017 10-K reports (years ended February 23, 2018, and February 24, 2017). 2018 2017 ($ millions) 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 Description Allowance for doubtful accounts Accounts receivable To write-off uncollectible accounts. Provision for doubtful accounts ÷ ÷ $3,055.5 $3,032.4 Allowance for doubtful accounts ÷ To record the provision for doubtful accounts. a. Prepare the journal entry to record accounts receivable written off as uncollectible in 2018. Also prepare the entry to record the provision for doubtful accounts (bad debts expense) for 2018. Enter answers in millions (as shown above). General Journal 300.3 307.6 28.2 15.9 Debit 11.2 2.5 (2.6) 11.1 2.6 ✔ 0✓ 2.5 ✓ 0✓ 11.7 Gross accounts receivable (in millions) Allowance as a % of gross receivables (Round to one decimal place.) 4.5 (5.0) 11.2 Credit $ 0 2.6✓ 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. 0✓ 2.5 ✓ 2018 311.4✓ $ 3.6% ✓ 2017 318.8 3.5% c. Calculate Steelcase's accounts receivable turnover for 2018. (Use Accounts receivable, net for the calculation.) Round answer to one decimal place. 10.1 times d. How much cash did Steelcase receive from customers in 2018? $ 3,060 x million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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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.
Question
Please provide steps for only Part d, unsure why it is incorrect
Transcribed Image Text:Analysis of Accounts Receivable and Allowance for Doubtful Accounts
Steelcase, Inc. reported the following amounts in its 2018 and 2017 10-K reports (years ended February 23, 2018, and February 24, 2017).
2018
($ millions)
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
Description
Allowance for doubtful accounts
Accounts receivable
To write-off uncollectible accounts.
Provision for doubtful accounts
+ ✓
Allowance for doubtful accounts + ✓
To record the provision for doubtful accounts.
$3,055.5 $3,032.4
Debit
300.3 307.6
28.2
15.9
11.2
2.5
(2.6)
11.1
a. Prepare the journal entry to record accounts receivable written off as uncollectible in 2018.
Also prepare the entry to record the provision for doubtful accounts (bad debts expense) for 2018.
Enter answers in millions (as shown above).
General Journal
2017
2.6 ✓
0✔
2.5 ✓
0✓
Gross accounts receivable (in millions)
Allowance as a % of gross receivables (Round to one decimal place.)
11.7
4.5
(5.0)
11.2
Credit
$
0✔
2.6✓
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.
2018
0✔
2.5 ✓
311.4 $
3.6% ✓
2017
318.8
3.5% ✔
c. Calculate Steelcase's accounts receivable turnover for 2018. (Use Accounts receivable, net for the calculation.) Round answer to one decimal place.
10.1 ✔ times
d. How much cash did Steelcase receive from customers in 2018?
$ 3,060 x million
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