Cedar Corp began using the allowance method in 2022. On January 1, 2022, Cedar had a $4,000 balance in the accounts receivable account and a zero balance in the allowance for doubtful accounts. During 2022, Cedar provided $30,000 of services on account and collected $26,000 in cash. Uncollectible accounts are estimated to be 3% of credit sales. What is the net realizable value of Cedar's accounts receivable as of December 31, 2022? a) $8,000 b) $7,100 c) $4,900 d) $3,900

Cedar Corp began using the allowance method in 2022. On January 1, 2022, Cedar had a $4,000 balance in the accounts receivable account and a zero balance in the allowance for doubtful accounts. During 2022, Cedar provided $30,000 of services on account and collected $26,000 in cash. Uncollectible accounts are estimated to be 3% of credit sales. What is the net realizable value of Cedar's accounts receivable as of December 31, 2022? a) $8,000 b) $7,100 c) $4,900 d) $3,900

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
Berry Farms has an accounts receivable balance at the end of 2018 of $425,650. The net credit sales for the year are $924,123. The balance at the end of 2017 was $378,550. What is the number of days sales in receivables ratio for 2018 (round all answers to two decimal places)?
Clovis Enterprises reports $845,500 in credit sales for 2018 and $933,000 in 2019. It has a $758,000 accounts receivable balance at the end of 2018 and $841,000 at the end of 2019. Clovis uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably, Clovis changes bad debt estimation to the balance sheet method at 5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Clovis Enterprises in 2019 as a result of its earnings management.
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Elm Corp. began using the allowance method in 2020. On January 1, 2020, Elm had a $4,000 balance in the accounts receivable account and a zero balance in the allowance for doubtful accounts. During 2020, Elm provided $30,000 of services on account. The company collected $26,000 in cash from accounts receivable. Uncollectible accounts are estimated to be 3% of sales on account. What is the net realizable value of Elm's accounts receivable as of December 31, 2020? a. $8,000 b. $4,900 c. $7,100 d. $900
The Accounts Receivable balance for Wedge Company at December 31, 2023, was $27,000. During 2024, Wedge earned revenue of $461,000 on account and collected $324,000 on account. Wedge wrote off $5,800 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 2% of accounts receivable. Read the reguirements. Requirement 1. Assume Wedge had an unadjusted $2,100 credit balance in Allowance for Bad Debts at December 31, 2024. Journalize Wedge's December 31, 2024, adjustment to record bad debts expense using the percent-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31 Requirement 2. Assume Wedge had an unadjusted $1,800 debit balance in Allowance for Bad Debts at December 31, 2024. Journalize Wedge's December 31, 2024, adjustment to record bad debts expense using the percent-of-receivables method. (Record debits first,…
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Given answer accounting questions
In 2021, Sheridan Company had net credit sales of $1124400. On January 1, 2021, Allowance for Doubtful Accounts had a credit balance of $27000. During 2021, $41400 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $376400, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2021? $52040 ○ $98040 ○ $23240 O $37640
(To record cash collected from customers) (To write off accounts judged uncollectible) (To reinstate an account that was previously written off) (To record subsequent collection of accounts that were previously written off) (To recognize the credit losses) ||||| |||