If Debtors turned over ration is 20 times in 2018 as compared to only 11 times in 2018, there is a possibility of: Select one: a. More thorough credit investigations made by the company late in 2016. b. Unrecorded credit sales in 2018. c. Fictitious sales in 2018. d. Unrecorded cash receipts in 2017.

If Debtors turned over ration is 20 times in 2018 as compared to only 11 times in 2018, there is a possibility of: Select one: a. More thorough credit investigations made by the company late in 2016. b. Unrecorded credit sales in 2018. c. Fictitious sales in 2018. d. Unrecorded cash receipts in 2017.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ingrid Inc. has strict credit policies and only extends credit to customers with outstanding credit history. The company examined its accounts and determined that at January 1, 2018, it had balances in accounts receivable and allowance for doubtful accounts of $478,000 and $7,900 (credit), respectively. During 2018, Ingrid extended credit for $3,075,000 of sales, collected $2,715,000 of accounts receivable, and had customer defaults of $4,280. Ingrid performed an aging analysis on its receivables at year-end and determined that $6,800 of its receivables will be uncollectible. Required: 1. Calculate Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment.$ 2. Calculate Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment.$ Prepare the necessary adjusting entry for 2018. Account and Explanation Debit Credit Bad Debt Expense Allowance for Doubtful Accounts Record…
Aerospace Electronics reports $590,065in credit sales for 2018 and $596,438 in 2019. They have a $460,716 accounts receivable balance at the end of 2018, and $437,471 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 8% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 9% during 2019. Determine the bad debt estimation for 2018. Round to the nearest whole dollar, no decimal places.
Can you also send me how to do this one? 2. Refer to the data below for XYZ Corporation. Credit sales during 2018 850,000 Accounts Receivable—January 1, 2018 334,000 Collections from credit customers during 2018 725,000 Estimated uncollectible accounts based on an aging analysis 13,200 Customer accounts written off as uncollectible during 2018 12,000 Allowance for doubtful accounts 1,700(after write-off of uncollectible accounts) Answer the following questions using the above data: A. What is the balance of Accounts Receivable at December 31, 2018? B. If the aging approach is used to estimate bad debts, what should the balance in Allowance for Doubtful Accountsbe after the bad debts adjustment? C. If the aging approach is used to estimate bad debts, what amount should be recorded as bed debts expense for2018?
solve this please
Zebra Company reported the following for 2022: Credit sales = $419884 Accounts Receivable = $16376 Allowance for Doubtful Accounts = $291 (credit balance) Bad Debt is estimated at 0.31 of 1% of sales After the adjusting entry is recorded, what is the value of Allowance for Doubtful Accounts? ROUND TO THE NEAREST DOLLAR
can you please help me answer these questions... Aardvark Company sells merchandise only on credit. For the year ended December 31, 2019, the following data are available: Sales (all on credit) $1,200,000 Accounts Receivable, January 1, 2019 225,000 Allowance for doubtful accounts, January 1, 2019 (credit) 15,000 Cash collections during 2019 1,050,000 Accounts written off as uncollected (default) during 2019 10,000 Determine the balance of Accounts Receivable at December 31, 2019. Assume that the company estimates bad debts at 2% of credit sales. What amount will the company record as bad debt expense for 2019? What journal entry would Aardvark prepare to record bad debt expense for 2019 (related to part 2)? Assume that the company estimates bad debts based on the aging method, and the aging schedule estimates that $30,100 of the year-end accounts receivable will be uncollected. What amount will the company record as bad debt expense for 2019? What…
I need the balance sheets completed for section 2. Thank you!
Aerospace Electronics reports $570,000 in credit sales for 2018 and $634,500 in 2019. They have a $501,000 accounts receivable balance at the end of 2018, and $602,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 6% during 2019. A. Determine the bad debt estimation for 2018. $ B. Determine the bad debt estimation for 2019. C. How does the new total bad debt expense affect net income and net accounts receivable? Bad debt expense is lower, net income is higher, and net re а. are higher. Bad debt expense is lower, net income is higher, and net re b. are lower. Bad debt expense is higher, net income is lower, and net re С. are higher. Bad debt expense is higher, net income is lower, and net re d. are lower.
I'm not so sure about my answer please help me.....
1.) Beltline Co. had credit sales of $100,000 for the year, and based on experience estimates that approximately 1% of these sales will be uncollectible. Under the percent of sales method, a.the adjusting entry to record the uncollectible sales would involve a debit to Allowance for Doubtful Accounts and a credit to Bad Debt Expense. b.the estimated uncollectible sales should not be recorded until there is firm evidence that a customer will not pay. c.the estimated bad debt expense is $1,000. d.the estimated bad debt expense is $10,000. 2.) Under the percentage of receivables method theory, a.the majority of accounts receivable portion will not be collected. b.some portion of the existing accounts receivable will not be collected. c.the percentage of uncollectible accounts is calculated as Average Uncollectible Accounts divided by Average Accounts Receivable. d."some portion of the existing accounts receivable will not be collected" and "the percentage of uncollectible…
Use Newell Brands, Inc.'s financial statement information to answer the following questions. Provide the following account balances for Newell Brands : December 31, 2020 December 31, 2019 Accounts Receivable (gross) Allowance for Doubtful Accounts Accounts Receivable, net Which of the above numbers represents the total amount Newell Brands is owed by customers as of December 31, 2020? Which of the above numbers represents the amount that Newell Brands believes it will not collect from its customers as of December 31, 2020? Which of the above numbers represents the amount that Newell Brands believes it will collect from its customers as of December 31, 2020? Provide the journal entry (both accounts and amounts) that Newell Brands must have made to record its estimate of Bad Debt Expense in 2020. Provide the journal entry (both accounts and amounts) that Newell Brands must…
Provide both Answer