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Griswold's, Incorporated (GI), began operations in January, selling inexpensive sunglasses to large retailers like Walgreens and other smaller stores. Assume the following transactions occurred during its first six months of operations. January 1 Sold merchandise to Walgreens for $29,000; the cost of these goods to GI was $20,100. February 12 Received payment in full from Walgreens. March 1 Sold merchandise to Bravis Pharmaco on account for $3,900; the cost of these goods to GI was $1,850. April 1 Sold merchandise to Tony's Pharmacy on account for $8,900. The cost to GI was $4,850. May 1 Sold merchandise to Anjuli Stores on account for $2,900; the cost to GI was $1,650. June 17 Received $6,950 on account from Tony's Pharmacy. Required: 1. Complete the following aged listing of customer accounts at June 30. 2. Estimate the Allowance for Doubtful Accounts required at June 30 assuming the following uncollectible rates: one month, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. 3-a. Show how GI would report its accounts receivable on its June 30 balance sheet. 3-b. What amounts would be reported on an income statement prepared for the six-month period ended June 30?

Griswold's, Incorporated (GI), began operations in January, selling inexpensive sunglasses to large retailers like Walgreens and other smaller stores. Assume the following transactions occurred during its first six months of operations. January 1 Sold merchandise to Walgreens for $29,000; the cost of these goods to GI was $20,100. February 12 Received payment in full from Walgreens. March 1 Sold merchandise to Bravis Pharmaco on account for $3,900; the cost of these goods to GI was $1,850. April 1 Sold merchandise to Tony's Pharmacy on account for $8,900. The cost to GI was $4,850. May 1 Sold merchandise to Anjuli Stores on account for $2,900; the cost to GI was $1,650. June 17 Received $6,950 on account from Tony's Pharmacy. Required: 1. Complete the following aged listing of customer accounts at June 30. 2. Estimate the Allowance for Doubtful Accounts required at June 30 assuming the following uncollectible rates: one month, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. 3-a. Show how GI would report its accounts receivable on its June 30 balance sheet. 3-b. What amounts would be reported on an income statement prepared for the six-month period ended June 30?

FINANCIAL ACCOUNTING
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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Griswold's, Incorporated (GI), began operations in January, selling inexpensive sunglasses to large retailers like Walgreens and other smaller stores. Assume the following transactions occurred during its first six months of operations. January 1 Sold merchandise to Walgreens for $29,000; the cost of these goods to GI was $20,100. February 12 Received payment in full from Walgreens. March 1 Sold merchandise to Bravis Pharmaco on account for $3,900; the cost of these goods to GI was $1,850. April 1 Sold merchandise to Tony's Pharmacy on account for $8,900. The cost to GI was $4,850. May 1 Sold merchandise to Anjuli Stores on account for $2,900; the cost to GI was $1,650. June 17 Received $6,950 on account from Tony's Pharmacy. Required: 1. Complete the following aged listing of customer accounts at June 30. 2. Estimate the Allowance for Doubtful Accounts required at June 30 assuming the following uncollectible rates: one month, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. 3-a. Show how GI would report its accounts receivable on its June 30 balance sheet. 3-b. What amounts would be reported on an income statement prepared for the six-month period ended June 30? Complete this question by entering your answers in the tabs below. Req 1 Req Estimated Uncollectible Req 3A Estimate the Allowance for Doubtful Accounts required at June 30 assuming the following uncollectible rates: one month, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. One Month Two Months Three Months More than Three Months Total Req 3B 0 < Req 1 Req 3A >
Transcribed Image Text:Griswold's, Incorporated (GI), began operations in January, selling inexpensive sunglasses to large retailers like Walgreens and other smaller stores. Assume the following transactions occurred during its first six months of operations. January 1 Sold merchandise to Walgreens for $29,000; the cost of these goods to GI was $20,100. February 12 Received payment in full from Walgreens. March 1 Sold merchandise to Bravis Pharmaco on account for $3,900; the cost of these goods to GI was $1,850. April 1 Sold merchandise to Tony's Pharmacy on account for $8,900. The cost to GI was $4,850. May 1 Sold merchandise to Anjuli Stores on account for $2,900; the cost to GI was $1,650. June 17 Received $6,950 on account from Tony's Pharmacy. Required: 1. Complete the following aged listing of customer accounts at June 30. 2. Estimate the Allowance for Doubtful Accounts required at June 30 assuming the following uncollectible rates: one month, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. 3-a. Show how GI would report its accounts receivable on its June 30 balance sheet. 3-b. What amounts would be reported on an income statement prepared for the six-month period ended June 30? Complete this question by entering your answers in the tabs below. Req 1 Req Estimated Uncollectible Req 3A Estimate the Allowance for Doubtful Accounts required at June 30 assuming the following uncollectible rates: one month, 1 percent; two months, 5 percent; three months, 20 percent; more than three months, 40 percent. One Month Two Months Three Months More than Three Months Total Req 3B 0 < Req 1 Req 3A >
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