In connection with the audit of NMD Inc. financial statements, the following data was gathered in connection to its accounts receivable for the year ended December 31, 2019. Accounts Receivable, Jan. 1, 2019 720,000 Allowance for Doubtful Accounts, Jan. 1, 2019 28,800 Sales during the year, all on account, terms 2/10, 1/15, n/60 3,600,000 Cash received from customers 3,840,000 Accounts written off 33,600 An analysis of the cash received from customers during the year revealed that P2,116,800 was received from customers availing the 10-day discount period, P1,188,000 from customers availing the 15-day discount period, P6,840 represented recovery of accounts written off, and the balance was received from customers paying beyond the discount period. NMD's year-end balance of allowance for doubful accounts was estimated to be 5% of the outstanding accounts receivable as of December 2019. How much is the accounts receivable as of December 31, 2019? a.460,800 b. 434,400 c. 405,600 d. 398,400
In connection with the audit of NMD Inc. financial statements, the following data was gathered in connection to its accounts receivable for the year ended December 31, 2019. Accounts Receivable, Jan. 1, 2019 720,000 Allowance for Doubtful Accounts, Jan. 1, 2019 28,800 Sales during the year, all on account, terms 2/10, 1/15, n/60 3,600,000 Cash received from customers 3,840,000 Accounts written off 33,600 An analysis of the cash received from customers during the year revealed that P2,116,800 was received from customers availing the 10-day discount period, P1,188,000 from customers availing the 15-day discount period, P6,840 represented recovery of accounts written off, and the balance was received from customers paying beyond the discount period. NMD's year-end balance of allowance for doubful accounts was estimated to be 5% of the outstanding accounts receivable as of December 2019. How much is the accounts receivable as of December 31, 2019? a.460,800 b. 434,400 c. 405,600 d. 398,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. In connection with the audit of NMD Inc. financial statements, the following data was gathered in connection to its
| Accounts Receivable, Jan. 1, 2019 | 720,000 |
| Allowance for Doubtful Accounts, Jan. 1, 2019 | 28,800 |
| Sales during the year, all on account, terms 2/10, 1/15, n/60 | 3,600,000 |
| Cash received from customers | 3,840,000 |
| Accounts written off | 33,600 |
An analysis of the cash received from customers during the year revealed that P2,116,800 was received from customers availing the 10-day discount period, P1,188,000 from customers availing the 15-day discount period, P6,840 represented recovery of accounts written off, and the balance was received from customers paying beyond the discount period.
NMD's year-end balance of allowance for doubful accounts was estimated to be 5% of the outstanding accounts receivable as of December 2019.
How much is the accounts receivable as of December 31, 2019?
a.460,800
b. 434,400
c. 405,600
d. 398,400
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education