At the beginning of current year, Nostalgia Company reported the following information: Accounts receivable Allowance for doubtful accounts 1,500,000 60,000 The following summary transactions affecting accounts receivable occurred during the current year: Sales - all on account 2/10, 1/15, n /60 7,935,000 Cash received from customers 8,000,000 The cash received from customers included the following. Customers paying within the 10-day discount period 4,410,000 Customers paying within the 15-day discount period 2,475,000 Recovery of accounts written off 15,000 Customers paying beyond the discount period Accounts receivable written off as worthless 55,000 Credit memoranda for sales return 30,000 Required: a. Prepare journal entries to record the transactions. b. Prepare the adjustment for doubtful accounts if the entity follows the percentage of accounts receivable consistently. c. Determine the net realizable value of accounts receivable at year-end?

At the beginning of current year, Nostalgia Company reported the following information: Accounts receivable Allowance for doubtful accounts 1,500,000 60,000 The following summary transactions affecting accounts receivable occurred during the current year: Sales - all on account 2/10, 1/15, n /60 7,935,000 Cash received from customers 8,000,000 The cash received from customers included the following. Customers paying within the 10-day discount period 4,410,000 Customers paying within the 15-day discount period 2,475,000 Recovery of accounts written off 15,000 Customers paying beyond the discount period Accounts receivable written off as worthless 55,000 Credit memoranda for sales return 30,000 Required: a. Prepare journal entries to record the transactions. b. Prepare the adjustment for doubtful accounts if the entity follows the percentage of accounts receivable consistently. c. Determine the net realizable value of accounts receivable at year-end?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Accounts Receivable At the beginning of the current year, Nikka Company reported the following information:Accounts receivable P1,800,000Allowance for doubtful accounts 72,000The following summary transactions affecting accounts receivable occurred during the current year:Sales – all on account 2/10, 1/15, n/60 P8,935,000Cash received from customers 8,000,000The cash received from customers including the following:Customers paying within the 10 day discount period 4,410,000Customers paying within the 15 day discount period 2,475,000Recovery of accounts written off 15,000Customers paying beyond the discount period ?Accounts receivable written off as worthless 55,000Credit memorandum for sales return 30,000The entity follows the percentage of accounts receivable consistently for the allowance for doubtfulaccount.Required:a) Prepare all necessary entries related to the above transactions affecting the accountsreceivable. (Observe the correct way of journalizing, use appropriate account…
Jinx Company provided the following information for the current year in relation to accounts receivable: Accounts receivable, January 1 1,300,000Credit sales 5,500,000Sales return 150,000Accounts written off 100,000Collections from customers 5,000,000Estimated future sales return on December 31 50,000Estimated uncollectible accounts per aging at year-end 250,000 What amount should be reported as net realizable value of accounts receivable on December 31?
SISSY Company provided the following information relating to accounts receivable for the current yearAccounts receivable on January 1 1,300,000Credit Sales 5,400,000Collections from customers, 4,750,000Accounts written off 125,000Estimated uncollectible receivables per aging 165,000What is the balance of accounts receivable before allowance for doubtful accounts on December 31?a. 1,825,000b. 1,850,000c. 1,950,000d. 1,990,000
What is the december 31, 2021 net realizable value?
The following information is related to December 31, 2024 balances. • Accounts receivable . Allowance for doubtful accounts (credit) . Cash realizable value $1430000 (103000) 1327000 During 2025 sales on account were $390000 and collections on account were $217000. The company wrote off $21100 in uncollectible accounts. An analysis of outstanding receivable accounts at year-end indicated that uncollectibles should be estimated at $144000. Bad debt expense for 2025 is: O $62100. O $144000. O $41000. O $19900
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Star Company provided the following transactions affecting accountsreceivable during the year ended December 31, 2014:Sales (cash and credit) 5,900,000Cash received from credit customers, all of whomtook advantage of the discount feature of theentity’s credit terms 4/10, n/30 3,024,000Cash received from cash customers 2,100,000Accounts receivable written off as worthless 50,000Credit memorandum issued to credit customersfor sales returns and allowances 250,000Cash refunds given to cash customers for salesreturns and allowances 20,000Recoveries on accounts receivable written off asuncollectible in prior periods (not included incash amount stated above) 80,000The following balances were taken from January 1, 2014 statement of financial position:Accounts receivable 950,000Allowance for doubtful accounts 100,000The entity provided for uncollectible accounts losses by crediting allowance for doubtful accountsin the amount of P 70,000 for the current year.23. What is the balance of accounts…
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Selected data for the Erdin Corporation for the year ended Decmeber 31, 20x5 is provided below: Credit sales Accounts receivable written off Recoveries of previously written of accounts receivable Allowance for doubtful accounts balance, January 1, 20x5 Accounts receivable, December 31, 20x5 Erdin estimates that 0.8% of sales will be uncollectible. Required - $4,500,000 36,500 1,800 33,000 cr. 625,000 Write the journal entries to record the accounts receivable written off, the recoveries and the bad debt expense. Calculate the ending balance in the allowance for doubtful account at December 31, 20x5. Note that the accounts receivable and recoveries have been accounted for in the ending Accounts Receivable balance.
Asian Boss Corp. has the following data relating to accounts receivable for the year ended December 31, 2020: Accounts receivable, January 1, 2020 500,000 Allowance for doubtful accounts, January 1, 2020 20,000 Sales during the year, all on account, terms 5/10, 3/15, n/60 2,400,000 Cash received from customers during the year 2,500,000 10,000 Accounts written off during the year An analysis of cash received from customers during the year revealed that P1,330,000 was received from customers availing the 10-day discount period, P388,000 from customers availing the 15-day discount period, P2,400 represented recovery of accounts written-off, and the balance was received from customers paying beyond the discount period. The allowance for doubtful accounts is adjusted so that it represents a certain percentage of the outstanding accounts receivable at year end. The required percentage at December 31, 2020 is 150% of the rate used on December 31, 2019. The doubtful accounts expense for 2020…
Emilio Co. had the following information relating to its accounts receivable: Accounts receivable, Jan. 1 Allowance for doubtful accounts, Jan. 1 Credit sales Sales discounts Collection from customers (excluding recoveries) Accounts written off Accounts previously written off but were eventually collected P2,000,000 40,000 10,000,000 70,000 8,700,000 120,000 60,000 Compute for the doubtful accounts expense for the year and the ending balance of the allowance for doubtful accounts given the following independent assumptions: Page 1 of 5 1. Uncollectible accounts are estimated at 1.5% of net credit sales. 2. Uncollectible accounts are estimated at 7.5% of outstanding accounts receivable.