Calculate the missing amounts. (Loss amounts should be indicated with a minus sign and input all other amounts as positive values. Do not round intermediate calculations. Round "Gross profit ratio" to 2 decimal places.) Company A Company B 2023 2022 2023 2022 Sales 251,000 $ 175,000 $ 42,500 Sales discounts 2,510 1,100 450 Sales returns and allowances 15,500 5,000 Net sales 157,750 39,500 Cost of goods sold 151,100 56,500 Gross profit from sales 50,500 47,900 18,500 Selling expenses 17,420 18,500 24,500 Administrative expenses 25,100 29,200 8,500 Total operating expenses 45,000 13,900 1,500 Profit (loss) Gross profit ratio % % %
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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