68. The following information about Theresa Company is available at December31, 2022:Employee income taxes withheldCash balance at first state BankCash overdraft at Harbor BankAccounts receivable with credit balance900,0002,500,0001,300,000750,000Estimated expenses of meeting warranties on merchandisepreviously sold500,000Estimated damages as a result of unsatisfactory performance on acontact1,500,000Accounts payable3,000,000Deferred serial bonds, issued at par and bearing interest at 12%,payable in semiannual installments of P500, 000 due April 1 andOctober 1 of each year, the last bond to be paid on October 1,2028. Interest is also paid semiannually.5,000,000Stock dividend payable2,000,000The December 31, 2022 balance sheet should report current liabilities ata. 8,100,000b. 7,950,000c. 9,100,000d. 7,350,000

Employee income taxes withheld Cash balance at first state Bank Cash overdraft at Harbor Bank Accounts receivable with credit balance Estimated expenses of meeting warranties on merchandise previously sold Estimated damages as a result of unsatisfactory performance on a contact Accounts payable Deferred serial bonds, issued at par and bearing interest at 12%, payable in semiannual installments of P500, 000 due April 1 and October 1 of each year, the last bond to be paid on October 1, 2028. Interest is also paid semiannually. Stock dividend payable The December 31, 2022 balance sheet should report current liabilities at a. 8,100,000 b. 7,950,000 c. 9,100,000 d. 7,350,000 900,000 2,500,000 1,300,000 750,000 500,000 1,500,000 3,000,000 5,000,000 2,000,000

Employee income taxes withheld Cash balance at first state Bank Cash overdraft at Harbor Bank Accounts receivable with credit balance Estimated expenses of meeting warranties on merchandise previously sold Estimated damages as a result of unsatisfactory performance on a contact Accounts payable Deferred serial bonds, issued at par and bearing interest at 12%, payable in semiannual installments of P500, 000 due April 1 and October 1 of each year, the last bond to be paid on October 1, 2028. Interest is also paid semiannually. Stock dividend payable The December 31, 2022 balance sheet should report current liabilities at a. 8,100,000 b. 7,950,000 c. 9,100,000 d. 7,350,000 900,000 2,500,000 1,300,000 750,000 500,000 1,500,000 3,000,000 5,000,000 2,000,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 65E: Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared...

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Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared the following data for sales and losses from uncollectible accounts: Required: 1. Calculate the average percentage of losses from uncollectible accounts for 2015 through 2018. 2. Assume that the credit sales for 2019 are $1,260,000 and that the weighted average percentage calculated in Requirement 1 is used as an estimate of loses from uncollectible accounts for 2019 credit sales. Determine the bad debt expense for 2019 using the percentage of credit sales method. 3. CONCEPTUAL CONNECTION Do you believe this estimate of bad debt expense is reasonable? 4. CONCEPTUAL CONNECTION How would you estimate 2019 bad debt expense if losses from uncollectible accounts for 2018 were What other action would management consider?
Estimating Bad Debts from Receivables Balances The following information is extracted from Shelton Corporations accounting records at the beginning of 2019: During 2019, sales on credit amounted to 575,000, 557,400 was collected on outstanding receivables and 2,600 of receivables were written off as uncollectible. On December 31, 2019, Shell on estimastes its bad debts to be 4% of the outstanding gross accounts receivable balance. Required: 1. Prepare the journal entry necessary to record Sheltons estimate of bad debt expense for 2019. 2. Prepare the Accounts Receivable section of Shelton's December 31, 2019, balance sheet. 3. Compute Shelton's receivables turnover. (Round to one decimal place.) 4. It Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 2?
The following information about Manchester Company is available on December 31, 2021. Income taxes withheld from employees P900,000 Cash balance at First State Bank – Account 101 2,500,000 Accounts receivable with credit balance 750,000 Cash overdraft at Second State Bank 1,310,000 Estimated expenses of meeting warranties on merchandise previously sold 500,000 Estimated damages as a result of unsatisfactory performance on a contract 1,500,000 Cash overdraft at Third State Bank – Account 102 10,000 Accounts payable 3,000,000Deferred serial bonds, issued at par and bearing interest at 12%, payable in semi-annual installment of P500,000 due April 1and October 1 of each year , the last bond to be paid October 1, 2026. Interest will be paid fully on maturity of the note. 5,000,000Stock dividends payable 2,000,000 Compute the total current liabilities on December 31, 2021
Milky Way Inc. provided the following information on December 31, 2021: .P 900,000 Employee income taxes withheld... Cash balance at BPI-Leon Guinto Branch. 2,500,000 1,300,000 750,000 500,000 Cash overdraft at BDO-A. Mabini Branch. Accounts receivable with credit balance. Estimated amount of meeting warranties.. Estimated damages as a result of unsatisfactory... 1,500,000 Accounts payable.... Deferred serial bonds, issued at par and bearing interest at 12%, payable in semi-annual installments of P 500,000 due April land October 1 of each, the last bond to be paid on October 1, 2027. Interest is also paid semi-annually. . 3,000,000 5,000,000 What amount should be reported as total current liabilities on December 31, 2021?
At the end of its first year of operations, December 31, 2021 Nickle Inc. reported the following information: Accounts receivable, net of allowance for doubtful accounts P 9,500,000 Customer accounts written off as uncollectible during 2021 240,000 Bad debt expense for 2021 840,000 What should be the balance of accounts recievable mat December 31, 2021 before substracting allowance for doubtful accounts? A. P 10,100,000 B. P 9,740,000 C. P 10,340,000 D. P 10,580,000
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23.K-Pop Company prepared an aging of its accounts receivable at December 31, 2021 and determined that the estimated uncollectibles on that date was P74,300. During 2021, some customers’ accounts were written off. Additional information is available as follows:Allow. for Uncollectible Accts, Dec. 31, 2020 - P63,000Uncollectible accounts expense reported in the statement of comprehensive income - P18,000Accounts Receivable, Dec. 31, 2021 - P607,500Recovery during 2021 of accounts previously written off - P12,000How much were the accounts written off during 2021?
what is the definitions/general overview of error correction and a change in estimate
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3. The following data are presented concerning the Allowance for Bad Debts of Company A for the year ended December 31, 2023: Allowance for Bad Debts, Jan.1,2023 Write off of Accounts Receivable during 2023 P250,000 50,000 150,000 Recovery of Previously Written off Accounts Receivable Credit Sales for the year 1,200,000 Accounts Receivable, Jan. 1, 2023 Collections during 2023 Required: Determine the following for the year ended December 31,2023: 3.1. Bad Debts Expense assuming the company provides 2% Credit Sales 9,000,000 4,000,000 3.2. Ending Balance of Allowance for Bad debts using the assumption in number 3.1 3.3. Net Realizable Value of Accounts Receivable using the assumption in number 3.1 3.4. Bad Debts Expense assuming the company provides 10% of Ending Accounts Receivable 3.5. Ending Balance of Allowance for Bad debts using the assumption in number 3.4 3.6. Net Realizable Value of Accounts Receivable using the assumption in number 3.4
a. 8,200,000 b. 6,200,000 c. 2,000,000 d. 4,200,000 Problem 4-15 (AICPA Adapted) 81 molde Steven Company provided the following information during the first year of operations: 0913410000 Total merchandise purchases for the current year Merchandise inventory on December 31 Collections from customers bgodno ode All merchandise was marked to sell at 40% above cost. All Isales are on a credit basis and all accounts are collectible, What amount should be reported as accounts receivable on December 31? od ove arlo batable pore ab a. 1,000,000 b. 3,840,000 c. 5,000,000 d. 5,800,000 7,000,000 1,400,000 4,000,000 120 000 030 000,000 at amount was received b remittance in full? a. 2,744,000 b. 2,940,000 c. 2,944,000 d. 3,140,000 Problem 4-17 (PHILCPA A Germany Company started busines year. The entity established an all- estimated at 5% of credit sales. wrote off P50,000 of uncollectible Further analysis showed th amounted to P9,000,000 and e was P1,500,000. Goods were s The total sales…
At its fiscal year end, under the aging of a company's accounts receivable, the uncollectible accounts are estimated to be $12,000. The unadjusted balance for the Allowance for Doubtful Accounts is $2,000 credit. Assume the company records adjusting entries only at year end. What is the amount of bad debts expense for the year? A. $12,000 B. $14,000 C. $10,000 D. $2,000