During 2018, Towson Company had credit sales of $60,000 and cash sales of $11,000. In 2018Towson collected $31,000 of accounts receivable resulting from sales on credit. Towson incurredoperating expenses of $63,000; of this amount, $42,900 was paid in 2018, and the remainingbalance represented a liability at year-end. In addition to these operating expenses, Towson alsopurchased for cash a three-year insurance policy on January 1, 2018. The cost of this policy was$3,000. What is Towson's 2018 accrual basis net income or loss? A business has the followingbalances in its financial records: Income tax 30,000 pounds; Selling & administration expenses80,000 pounds; Revenue 350,000 pounds; Interest expenses 15,000 pounds; Cost of Sales 190,000pounds. How much is the Gross profit, Operating profit, and Net Profit after tax? AnnapolisCorporation's trial balance included debits to expense accounts of $150,000, credits to revenueaccounts of $243,000, and debits to the Dividends account of $50,000. Based on this information,what is the amount of the company's net income or loss?

Towson Company 2018 Accrual Basis Net IncomeRevenue:Credit Sales: $60,000Cash Sales: $11,000Total…

Answered: During 2018, Towson Company had credit…

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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During 2020, Rumbo Corporation had cash and credit sales of $21,760 and $15,225, respectively. The company also collected accounts receivable of $9,765 and incurred operating expenses of $27,700, 80% of which were paid during the year. In addition, Rumbo prepaid $4,500 for an 18-month advertising campaign that began September 30. Rumbo’s accrual basis net income (loss) for the fiscal year ending December 31, 2020, was: a $14,075 b $9,285 c $8,535 d ($775)
During 2020, Reliable Corporation had cash and credit sales of $21,760 and $15,225, respectively. The company also collected accounts receivable of $9,765 and incurred operating expenses of $27,700, 80% of which were paid during the year. In addition, Reliable prepaid $4,500 for an 18 month advertising campaign that began September 30. Reliable’s accrual basis net income (loss) for the year ending December 31, 2020 was: Group of answer choices A. $8,535 B. $14,075 C. ( $775) D. $9,285
During 2020, Best Corporation had cash and credit sales of $36,420 and $18,560, respectively. The company also collected accounts receivable of $10,350 and incurred operating expenses of $39,600, 80% of which were paid during the year. In addition, Best prepaid $4,500 for an 18 month advertising campaign that began September 30. Best Company's accrual basis net income (loss) for the year ending December 31, 2020 was: Group of answer choices A. $8,535 B. $240 C. $14,630 D. $18,800
Ray Company factored 6,000,000 of accounts receivable to a finance entity on October 1, 2020. Control was surrendered by Ray Company. The factor assessed a fee of 3% and retains a holdback equal to 5% of the accounts receivable. In addition, the factor changed 15% interest computed on a weighted average time to maturity of the accounts receivable of 54 days. What is the amount of cash initially received by Ray Company from the factoring?
Williams Company uses the net credit sales method to estimatebad debt expense and has estimated that 6% of its credit saleswill be uncollectible. During 2027, Williams Company reportednet credit sales of $350,000 and collected a total of $426,000cash from its credit customers. Also during 2027, Williams Co.wrote-off $12,000 of accounts receivable as being uncollectibleand had recoveries of previously written off accounts receivabletotaling $19,000 (note that the $19,000 recovery is not includedin the $426,000 of cash collections given previously). WilliamsCompany reported accounts receivable of $202,000 and had anallowance for doubtful accounts with a $27,000 credit balanceat January 1, 2027.Calculate the net realizable value of Williams Company's accountsreceivable at December 31, 2027.
ABC Corporation began 2019 with an accounts receivable balance of $56,921. During 2019, ABC had sales revenue of $207,500: $35,000 of that was cash sales and $172,500 of that was credit sales. ABC wrote off $10,000 of uncollectible accounts and had payments on account of $180,000 Create a T-account for Accounts Receivable. Post the relevant information from above and calculate ABC Corporation’s Accounts Receivable balance at 12/31/19.
Jayco Inc. started its operations in 2022. Its sales during 2022, all on account, totalled $700,000. The company collected $500,000 in cash from customers during the year and wrote off $8,000 in uncollectible accounts. The company set up an allowance for doubtful accounts at December 31, 2022, its fiscal year-end, and determined the account balance to be $14,000. The unadjusted balances of selected accounts at December 31, 2023 are as follows: Accounts receivable $ 300,000 Allowance for doubtful accounts (debit) 10,000 Sales revenue (including 80 percent in sales on account) 800,000 Aging of the accounts receivable on December 31, 2023, resulted in an estimate of $11,000 in potentially uncollectible accounts. Required: 2. Prepare the journal entries to record all the transactions during 2023 and post them to appropriate T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)…
Pepper, Inc. had the following receivable financing transactions in 2021:a) At the beginning of November, Pepper, Inc. assigned P2,000,000 out of its P10,000,000 outstanding accounts receivables to Metrobank in consideration of a P1,500,000, 12% loan. Metrobank charged the company 5% of the loan principal as service charge. By the end of November, Pepper collected P600,000 cash from the assigned accounts net of a P50,000 sales discount. Also, by the end of November, Pepper accepted from customers merchandise originally invoiced at P60,000 as returns.By the end of December, Pepper collected another P700,000 from the assigned accounts after P40,000 sales discount. The company wrote-off P80,000 of the assigned accounts as worthless.The agreement with Metrobank calls for monthly remittance of customer collections for the month. The collections will cover both interest and loan principal.b) Also, at the beginning of November, Pepper, Inc. factored another P500,000 of its accounts…
On February 1, 2021, JANE Company factored receivables with a carrying amount of ₱300,000 to JACK Company. JACK Company assesses a finance charge of 3% of the receivables and retains 5% of the receivable for possible sales returns. Relative to this transaction, you are to determine the amount of loss on sale or factoring to be reported in the income statement of JANE Company for February. Assume that JANE factors the receivables on a without recourse basis. 1.) The loss to be reported is? * a. 24,000 b. 0 c. 15,000 d. 9,000 2.) The amount of cash initially to be received is? a. 276,000 b. 300,000 c. 285,000 d. 291,000
The balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance for Doubtful Accounts of $11,783 (credit balance). The company’s total sales during 2019 were $8,350,200. Of these, $1,252,530 were cash sales the rest were credit sales. By the end of the year, the company had collected $6,291,700 of accounts receivable. It also wrote off an account for $10,380. Prepare the journal entry for write-offs. Account Names DR CR Blank 1. Fill in the blank, read surrounding text. Blank 2. Fill in the blank, read surrounding text. Blank 3. Fill in the blank, read surrounding text. Blank 4. Fill in the blank, read surrounding text. Blank 5. Fill in the blank, read surrounding text. Blank 6. Fill in the blank, read surrounding text. Blank 7. Fill in the blank, read surrounding text. Blank 8. Fill in the blank, read surrounding text. Blank 9. Fill in the blank, read surrounding text. Blank 10. Fill in the blank, read surrounding text. Blank 11. Fill…

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