Banana Co. began operations on January 2, 20x1. Banana uses the "installment sales method" of accounting. Banana's records on December 31, 20x1 show the following information: Installment accounts receivable, Dec. 31, 20x1 800,000 Deferred gross profit, before year-end adjustment Gross profit on sales 560,000 40% How much is the realized gross profit in 20x1?

Banana Co. began operations on January 2, 20x1. Banana uses the "installment sales method" of accounting. Banana's records on December 31, 20x1 show the following information: Installment accounts receivable, Dec. 31, 20x1 800,000 Deferred gross profit, before year-end adjustment Gross profit on sales 560,000 40% How much is the realized gross profit in 20x1?

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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The following information is available for Market, Incorporated and Supply, Incorporated at December 31: Accounts Market, Incorporated Supply, Incorporated $ 58,600 $ 79,600 Accounts receivable Allowance for doubtful accounts 3,148 Sales revenue 636,960 2,556 917,100 Required: 1. What is the accounts receivable turnover for each of the companies? 2. What is the average days to collect the receivables? 3. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company
Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 debit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the ending balance in the Allowance for Uncollectible Accounts? $8,500 $8,800 $3,800 $8,200
Percent of sales method At the end of the current year, Accounts Receivable has a balance of $745,000; Allowance for Doubtful Accounts has a credit balance of $6,500; and sales for the year total $3,350,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ X b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ X Allowance for Doubtful Accounts $ X Bad Debt Expense $ X c. Determine the net realizable value of accounts receivable. < $ X
The financial statements of the Sunland Company report net sales of $384000 and accounts receivable of $50400 and $33600 at the beginning of the year and the end of the year, respectively. What is the average collection period for accounts receivable in days?
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At the end of the year, Dahl Enterprises estimates the uncollectible accounts expense to be 0.8 percent of net sales of $7,575,000. The current credit balance of Allowance for Uncollectible Accounts is $12,900. Prepare the entry to record the uncollectible accounts expense. What is the balance of Allowance for Uncollectible Accounts after this adjustment? You must show your computations.
A company has net credit sales of $499000 for the year and it estimates that uncollectible accounts will be 3% of its Account Receivables balance. If Allowance for Doubtful Accounts has a credit balance of $2000 prior to adjustment, its balance after adjustment will be a credit of $16970. $14970. $12970. $14910.
At the end of the current year, the accounts receivable account has a debit balance of $1,117,000 and sales for the year total $12,670,000. a. The allowance account before adjustment has a credit balance of $15,100. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a credit balance of $15,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $48,300. c. The allowance account before adjustment has a debit balance of $6,400. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $6,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,100. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. b. $ C. $ d. $
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Allowance for doubtful accounts has a credit balance of $9000 at the end of the year, before adjustments. Sales for the year amounted to $1740000, and sales returns and allowances amounted to $63000. If uncollectible accounts expense is estimated at 2% of the net sales, the amount of the appropriate adjusting entry will be (nearest whole dollar)
At the end of the year, a company reports a balance in its Allowance for Uncollectible Accounts of $2,000 (credit) before any year-end adjustment. The company estimates future uncollectible accounts to be 2% of credit sales for the year. Credit sales for the year total $282,000. Record the adjustment for the allowance for uncollectible accounts using the percentage-of-credit-sales method on a balance sheet.
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