Geisel, Incorporated reported net sales revenue of $512,000 in 2021 and $627,000 in 2022. The company's ending net receivables were $115,000 at December 31, 2020 and $131,000 at December 31, 2021. At December 31, 2022, the company had Accounts Receivable of $154,000 and an unadjusted debit balance in its Allowance for Doubtful Accounts account of $1,100. The company reported Bad Debt Expense of $9,450 during 2022. Required: a. Determine the net receivables at December 31, 2022. b. Calculate the receivables turnover ratio for 2021 and 2022. c. Calculate the days to collect for 2021 and 2022.
Geisel, Incorporated reported net sales revenue of $512,000 in 2021 and $627,000 in 2022. The company's ending net receivables were $115,000 at December 31, 2020 and $131,000 at December 31, 2021. At December 31, 2022, the company had Accounts Receivable of $154,000 and an unadjusted debit balance in its Allowance for Doubtful Accounts account of $1,100. The company reported Bad Debt Expense of $9,450 during 2022. Required: a. Determine the net receivables at December 31, 2022. b. Calculate the receivables turnover ratio for 2021 and 2022. c. Calculate the days to collect for 2021 and 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Geisel, Incorporated reported net sales revenue of $512,000 in 2021 and $627,000 in 2022. The company's ending net receivables
were $115,000 at December 31, 2020 and $131,000 at December 31, 2021. At December 31, 2022, the company had Accounts
Receivable of $154,000 and an unadjusted debit balance in its Allowance for Doubtful Accounts account of $1,100. The company
reported Bad Debt Expense of $9,450 during 2022.
Required:
a. Determine the net receivables at December 31, 2022.
b. Calculate the receivables turnover ratio for 2021 and 2022.
c. Calculate the days to collect for 2021 and 2022.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
Determine the net receivables at December 31, 2022.
Net receivables
< Required A
Required B >
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