At January 1, 2021, Steering Imports Inc. reported the following on its statement of financial position: Accounts receivable Allowance for doubtful accounts 1. During 2021, the company had the following summary transactions for receivables: 2. 3. 4. 5. $1,968,000 6. 132,800 Sales on account, $6,048,000: Cost of goods sold, $3,320,000; return rate of 2% Selling price of goods returned. $96,000; cost of goods returned to inventory, $51,200 Collection of accounts receivable, $6,048,000 Write offs of accounts receivable deemed uncollectible, $176,000 Collection of accounts previously written off as uncollectible, $81.600 After considering all of the above transactions, total estimated uncollectible accounts, $116,800
At January 1, 2021, Steering Imports Inc. reported the following on its statement of financial position: Accounts receivable Allowance for doubtful accounts 1. During 2021, the company had the following summary transactions for receivables: 2. 3. 4. 5. $1,968,000 6. 132,800 Sales on account, $6,048,000: Cost of goods sold, $3,320,000; return rate of 2% Selling price of goods returned. $96,000; cost of goods returned to inventory, $51,200 Collection of accounts receivable, $6,048,000 Write offs of accounts receivable deemed uncollectible, $176,000 Collection of accounts previously written off as uncollectible, $81.600 After considering all of the above transactions, total estimated uncollectible accounts, $116,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:At January 1, 2021, Steering Imports Inc. reported the following on its statement of financial position:
Accounts receivable
Allowance for doubtful accounts
1.
During 2021, the company had the following summary transactions for receivables:
2.
3.
4.
5.
$1,968,000
6.
132,800
Sales on account, $6,048,000; Cost of goods sold, $3,320,000; return rate of 2%
Selling price of goods returned, $96,000; cost of goods returned to inventory, $51,200
Collection of accounts receivable, $6,048,000
Write offs of accounts receivable deemed uncollectible, $176,000
Collection of accounts previously written off as uncollectible, $81.600
After considering all of the above transactions, total estimated uncollectible accounts, $116,800
Transcribed Image Text:Show the statement of financial position presentation of the receivables as at December 31.
STEERING IMPORTS INC.
Statement of Financial Position (partial)
December 31, 2021
Assets
10
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