Fiscal Year Ended:Net SalesCoca-ColaPepsiCoAccounts ReceivableAllowance for Doubtful AccountsAccounts Receivable, Net of AllowancePAS-5 Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to CollectCoca-Cola and PepsiCo are two of the largest and most successful beverage companies in theworld in terms of the products that they sell and their receivables management practices. To evalu-ate their ability to collect on credit sales, consider the following rounded amounts reported in theirannual reports (amounts in millions).1.Coca-Cola20180S 2017$35,4104,1504803,670$31,8603,8904903,4002016$41,8604,3304703,8602018$64,6607,2401007,140bylinePepsiCo6901 2017$63,5257,1551307,025LOM2016$62,8006,8351356,700Required:bris 02 snut no 12575in low M23 sin temosrytą legioning baa lassani oor lam liv M23 vatno smo se sasCalculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for2018 and 2017. (Round to one decimal place.)2. Which of the companies is quicker to convert its receivables into cash in 2018? in 2017? Afondusi noitammolni bebiving and oud JassiW dowOWI Pil

The account receivables turnover ratio tells about the efficiency of the business to convert its…

Coca-Cola PepsiCo Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts unts Receivable Net of Allowance Coca-Cols and PepsiCo are two of the largest and most successful beverage companies world in terms of the products that they sell and their receivables management practices. To evalu- ate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). 2018 B $31,860 3,890 490 3,400 all Coca-Cola 1909 2017 $35,410 4,150 480 3,670 von Bodybu PepsiCoani huM 24 SO12016 2016 125 2018ms od 2017 $41,860 $63,525 4,330 7,155 470 130 3,860 7,025 $64,660 7,240 100 7,140 $62,800 6,835 135 6,700

Coca-Cola PepsiCo Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts unts Receivable Net of Allowance Coca-Cols and PepsiCo are two of the largest and most successful beverage companies world in terms of the products that they sell and their receivables management practices. To evalu- ate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). 2018 B $31,860 3,890 490 3,400 all Coca-Cola 1909 2017 $35,410 4,150 480 3,670 von Bodybu PepsiCoani huM 24 SO12016 2016 125 2018ms od 2017 $41,860 $63,525 4,330 7,155 470 130 3,860 7,025 $64,660 7,240 100 7,140 $62,800 6,835 135 6,700

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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3. Conceptual Connection: The weighted average for the 4 years (rounded to three decimals) is If credit sales for 2024 are $400,000, what rate would you recommend to estimate bad debts? A rate closer to Feedback Check My Work 1 & 2. Use the data from prior years to calculate losses from uncollectible accounts as a percentage of credit sales. Consider how the loss rate has changed over the years. Feedback 4. If credit sales for 2024 are $400,000 and using the rate you recommended above, record bad debt expense for 2024. Round your answer to three decimal places. Bad Debt Expense 27,600 X Allowance for Doubtful Accounts Record adjusting entry for bad debt expense estimate Check My Work 4. Make the best estimate of bad debt expense you can. 0.069. Increase 0.082 X would be more conservative. 5. Conceptual Connection: Using the data from 2020 through 2023, estimate the change in income from operations in total for those 4 years assuming (a) the average gross margin is 25% and (b) 50% of…
Problem 3 On January 1,2020, Jamin Company had a credit balance of P260,000 in the allowance for uncollectible accounts. Based on past experience, 2% of credit sales would be uncollectible. During the year, the entity wrote off P325,000 of uncollectible accounts. Credit sales for the year were P9,000,000. On December 31,2020, what amount should be reported as allowance for uncollectible accounts?
The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts
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(8 Problems 1) On January 1, 2021, Cali Consulting has a $110,000 balance in accounts receivable and a $0 balance in the Allowance for Uncollectible Accounts. During 2021, Cali provides $205,000 of service on account. The company collected $190,000 cash from Accounts Receivable. Uncollectible accounts are estimated to be 3% of sales on account. a. What is the amount of uncollectible accounts expense recognized in 2021? b. What is the amount of cash flows from Operating activities that would appear on the 2021 Cash Flow statement? Show the impact (with amounts) of each of the following items on the horizontal C. Oquation. For the asset section, name the specific accounts impacted. i. Record Sales during the year on account of $205,000. ii. Show the impact of $190,000 cash collected during the year. ii. Establish an Allowance for Uncollectible Accounts at year-end. 3. Study guide - Chapter 5 (with solutions).docx O A 69°F P. f5 f12 6J prt sc I14 &
View Policies Current Attempt in Progress Vaughn Manufacturing has outstanding accounts receivable totaling $ 6.47 million as of December 31 and sales on credit during the year of $ 24.5 million. There is also a credit balance of $ 11500 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? O $388200. O $ 399700. O $ 376700. O $1470000. Save for Later Attempts: 0 of 1 used Submit Answer
K Accounts receivable management This table, shows that Blair Supply had an end-of-year accounts receivable balance of $300,000. The table also shows how much of the receivables balance originated in each of the previous six months. The company had annual sales of $2.40 million and it normally extends 30-day credit terms to its customers. a. Use the year-end total to evaluate the firm's collection system. b. If 70% of the firm's sales occur between July and December, would this affect the validity of your conclusion in part a? Explain. a. The average collection period is days. (Round to two decimal places.)
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Question 8 Dreadful Behaviour Ltd has credit sales of $400,000 in 2022 and a debit balance of $1,900 in the Allowance for Doubtful Accounts at year end. As of December 31, 2022, $120,000 of accounts receivable remain uncollected. The credit manager of Dangle prepared an aging schedule of accounts abnor receivable and estimates that $4,800 will prove to be uncollectible. On March 3, 2023 the credit manager authorizes a write-off of the $1,000 balance owed by D. Taylor. On April 1, 2023 Mr. Taylor pays his account in full and also pays Dangle $75 interest on his account Required (a) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2022. (b) Show the statement of financial position presentation of accounts receivable on December 31, 2022. (c) On March 3, 2023 before the write-off, assume the balance of Accounts Receivable account is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000. Make the appropriate entry to record…
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