In 2021 Nash's Trading Co. had credit sales of $1840000 and sales returns related to these sales of $140000. Its comparative balance sheet at December 31, 2021 showed the following: Accounts receivable Less: Allowance for doubtful accounts Carrying amount Nash's Trading's receivable turnover for 2021 is O 2.00. O 2.16. 2.18. 2.36. 2021 $900000 70000 $830000 2020 $800000 69000 $731000

In 2021 Nash's Trading Co. had credit sales of $1840000 and sales returns related to these sales of $140000. Its comparative balance sheet at December 31, 2021 showed the following: Accounts receivable Less: Allowance for doubtful accounts Carrying amount Nash's Trading's receivable turnover for 2021 is O 2.00. O 2.16. 2.18. 2.36. 2021 $900000 70000 $830000 2020 $800000 69000 $731000

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

On December 31, 2022, Ace Hardware reported the following information on its balance sheet: Accounts Receivable $1,350,000 Allowance for Doubtful Accounts (credit) 81,000 During 2023, the Company had the following transactions related to receivables: Sales on Account Collections on Account Write-offs of uncollectible accounts Recovery of previously written off accounts If bad debts are estimated to be 1.50% of credit sales, determine the ending balance in the Allowance for Doubtful Accounts after adjustment, at the end of 2023: Select one: O $4,500,000 4,275,000 90,000 18,000 a. $67,500 b. $94,500 c. $58,500 d. $76,500 e. $74,250
Errol Company estimates its allowance for doubtful accounts usingpercentage of sales method. The total sales of the company for 2021amounted to P10,000,000, P3,000,000 of which are sold for cash. Erroldetermined that 12% is an appropriate estimate of bad debts expense.Errol also provided the following information:Write-offs during the period amounted to P500,000Allowance for doubtful accounts at the beginning of 2021 amounted toP285,000Recoveries of amounts previously written-off amounted to P120,000The accounts receivable as of December 31, 2021 is P5,000,000How much is the allowance for doubtful expense account as ofDecember 31, 2021?
Here is information related to Ayayai Company for 2022. Total credit sales $2,571,000 Accounts receivable at December 31 830,000 Uncollectibles written off 32,300 (a) What amount of bad debt expense will Ayayai Company report if it uses the direct write-off method of accounting for uncollectibles?$__________ (b) Assume that Ayayai Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Ayayai record if Allowance for Doubtful Accounts has a credit balance of $4,300?$__________ (c) Assume that Ayayai Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Ayayai record if Allowance for Doubtful Accounts has a debit balance of $4,300?$__________
A company has net credit sales of $499000 for the year and it estimates that uncollectible accounts will be 3% of its Account Receivables balance. If Allowance for Doubtful Accounts has a credit balance of $2000 prior to adjustment, its balance after adjustment will be a credit of $16970. $14970. $12970. $14910.
In 2021 Coronado Co. had credit sales of $1810000 and sales returns and allowances related to these sales of $150000. Its comparative balance sheet at December 31, 2021 showed the following: 2021 2020 Accounts receivable $775000 $676000 Less: Allowance for doubtful accounts 74000 66000 Carrying amount $701000 $610000 The company's average collection period for 2021 is (Round answers to 0 decimal places. Use 365 days for the calculation purpose) O 136 days. O 144 days. O 146 days. O 160 days.
RCM Company has $55,000 in accounts receivable and a debit balance of $800 in the Allowance for Doubtful Accounts on December 31, 2019. Which of the following is part of the journal entry to estimate the bad debt expense and allowance for doubtful accounts assuming that RCM estimates that 4.5% of accounts receivable will be uncollectible? O Debit $1,675 Credit $1,675 O Debit $3,275 O None of the choices are correct. O Credit $3,275
Maple Leaf Foods Inc. reported the following selected information (in thousands) for the three years ended December 31, 2018, 2017, and 2016: 2018 2017 2016 Trade receivables (gross) $109,945 $90,862 $90,463 Allowance for doubtful accounts 1,305 5 5 Sales 3,495,519 3,522,226 3,331,812 (a) Calculate Maple Leaf’s receivables turnover and average collection period for 2018 and 2017. (Round answers to 1 decimal place, e.g. 52.5.) 2018 2017 Receivables turnover enter number of times rounded to 1 decimal place times enter number of times rounded to 1 decimal place times Average collection period enter days rounded to 1 decimal place days enter days rounded to 1 decimal place days
Here is information related to Pharoah Company for 2022. Total credit sales $1,590,000 Accounts receivable at December 31 839,000 Uncollectibles written off 34,700 (a) What amount of bad debt expense will Pharoah Company report if it uses the direct write-off method of accounting for uncollectibles? Bad debt Expense $ (b) Assume that Pharoah Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $2,800? Bad debt Expense $ (c) Assume that Pharoah Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a debit balance of $1,200? Bad debt Expense $
Shiplt Corporation reported the following rounded amounts (in millions): Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) Required: 1. Determine the receivables turnover ratio and days to collect for 2019. 2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2018, when the turnover was 11.2? Complete this question by entering your answers in the tabs below. Required 1 Required 2 2019 2018 $ 5,355 $ 5,060 (265) (270) $ 5,090 $ 4,790 $ 49,000 $ 47,200 Determine the receivables turnover ratio and days to collect for 2019. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 1 decimal place.) Receivables Turnover Ratio Days to Collect times days
Wildhorse Co. had net credit sales during the year of $1223200 and cost of goods sold of $712000. The balance in accounts receivable at the beginning of the year was $121200 and at the end of the year was $156800. What was the accounts receivable turnover? 10.8 7.5 5.6 8.8
Hogenson Company estimates bad debt expense at 0.60% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $481,000 and $1,480 respectively on December 31, 2018. During 2019, Hogenson Company's credit sales and collections were $325,000 and $316,000, respectively, and $1,870 in accounts receivable were written off. Determine the company’s net realizable value of accounts receivable on December 31, 2019. A. $488,440.B. $484,700.C. $486,570. D. $469,020.