Indus Corporation uses an income statement approach to estimate credit losses. Its gross Accounts Receivable of Rs 5,000,000 at the beginning of the priod had a net realizable value of Rs 4,925,000. During the period, the company wrote off actual accounts receivable of Rs 100,000 and collected Rs 7,835,000 from credit customers. Credit sales for the year amounted to Rs 9,000,000. Of its credit sales, 1 percent was estimated to eventually be uncollectible. Determine the net realizable value of the company’s accounts receivable at the end of the period.

Q: Highland Company uses the allowance method of handling credit losses. It estimates losses at 2% of…

A: The balance sheet shows the financial position of the company by recording all the assets,…

Q: Liang Company began operations in Year 1. During its first two years, the company completed a number…

A: Under Perpetual inventory method, the cogs is transferred from inventory account as when the sale is…

Q: Liang Company began operations in Year 1. During its first two years, the company completed a number…

A: Journal entry is a process of initially recording and classifying business transactions into books…

Q: Compute (a) accounts receivable turnover and (b) days' sales uncollected. H

A: Accounts Receivable Turnover :— It is the ratio between net sales and average accounts receivable.…

Q: The financial statement of Minnesota Mining and Manufacturing Company ( 3M ), report net sales of…

A: Account Receivable Turnover =  Net Credit Sales Average Account Receivable Net Credit Sales = Total…

Q: Valenzuela, Incorporated, has a cash cycle of 45.5 days, an operating cycle of 67 days, and an…

A: Operating cycle is calculated by taking the inventory turnover days and the account receivable days…

Q: 9. Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The…

A: For income statement method, uncollectible accounts is calculated on the basis of Total or credit…

Q: A firm had credit sales of $15,750,000 last year and its days sales outstanding was 65 days.  What…

A: Given, Credit sales = $15,750,000. Days sales outstanding = 65 days.

Q: Liang Company began operations in Year 1. During its first two years, the company completed a number…

A: The account receivables have normal debit balance. The allowance for doubtful accounts have normal…

Q: For its most recent year, a certain company had sales (all on credit) of $830,000 and cost of goods…

A: Step 1:Formula for accounts receivable turnover ratio= Net credit sales / average accounts…

Q: The credit manager of Montour Fuel has gathered the following information about the company’s…

A: Uncollectible accounts: Uncollectible accounts refer to that part of receivables which become…

Q: Liang Company began operations in Year 1. During its first two years, the company completed a number…

A: The bad debt expense represents the estimated percentage levied on net accounts receivable. The net…

Q: Harem Company revealed a balance of P8,200,000 in the accounts receivable control at year-end. An…

A: Sales are made on cash and credit basis. The amount to be collected from sales made on credit basis…

Q: At the beginning of the current period, Ayayai Corp. had balances in Accounts Receivable of $300,000…

A: For credit sales we should debit Account receivable account and credit sales revenue account.

Q: 19.Timothy Corp. had accounts receivable of P 150,000 and allowance for doubtful accounts of P…

A: Given, Accounts receivable = P 150,000, Allowance for doubtful accounts = P 12,000 at the beginning…

Q: YG Company uses an income statement approach to estimate credit losses. Its gross Accounts…

A: Cash realizable value of the company’s accounts receivable at the end of the period can be…

Q: At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of…

A: Under the allowance method company makes provisions for uncollectible accounts at the end of the…

Q: Williams Company uses the net credit sales method to estimate bad debt expense and has estimated…

A: Net realizable value is a value computed by deducting allowance for doubtful accounts from the Gross…

Q: Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which…

A: Step 1 Receivables Turnover Ratio =Net Sales / Average Accounts Receivables Average days to collect=…

Q: At the beginning of the current period, Whispering Winds Corp. had balances in Accounts Receivable…

A: The accounting equation sheds light on a company's financial situation, which makes financial…

Q: The Daisy Company had net credit sales of $880,000 for the year. Cash sales for the year were…

A: DAYS SALES IN RECEIVABLEDays Sales to Receivable is a ratio between 360/365 Days and Receivable…

Q: The beginning Accounts Receivable and Allowance for Doubtful Accounts balances of ABC Corporation…

A: Net realizable value of the Accounts receivable = Accounts receivable Balance - Allowance for…

Q: A firm had credit sales of $15,750,000 last year and its days sales outstanding was 65 days. What…

A: Days Sales Outstanding (DSO) is the measure the average number of days  a business to receive…

Q: Your Company earned $520,000 of revenue on account and $100,000 of cash sales during the year. It…

A: Accounts receivables are those customer accounts to whom credit sales has been made by business, but…

Q: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The…

A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…

Q: At the beginning of the current period, Kingbird, Inc. had balances in Accounts Receivable of…

A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…

Q: 9. Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The…

A: The income statement method estimates bad debts based on the percentage of credit sales. Whereas the…

Q: Calvani, Inc., has a cash cycle of 43.5 days, an operating cycle of 63 days, and an inventory period…

A: Variables in the question:Cash cycle=43.5 daysOperating cycle=63 daysInventory period=27 days Cost…

Q: Lang Company began operations in Year 1. During its first two years, the company completed a number…

A: The journal entries are prepared to record day to day transactions of the business on regular basis.…

Q: During the current year, Watanabe’s Camera Shop had sales revenue of $210,000, of which $86,400 was…

A: Here , to calculate the company bad debts expense , we need to prepare two account i.e. Account…

Q: The following Information is from the annual financial statements of Raheem Company. Net sales…

A: The ratio analysis helps to analyse the financial statements of the business. The accounts…

Q: During the current year, Khan’s Camera Shop had sales revenue of $220,000, of which $100,800 was on…

A: Bad debts expense refers to an expense for recording accounts receivable which are uncollectible…

Q: Liang Company began operations in Year 1. During its first two years, the company completed a number…

A: The journal entries are prepared to record the transactions on regular basis. The allowance for…

Q: y has net sales of 1,630,200 an

A: The accounts receivable turnover ratio,   also known as the debtor’s turnover ratio, is an…

Q: What is the receivales turnover and what is the average collection period (days sales outstanding) ?

A: Information Provided: Credit sales = $10,640,000 Receivables = $1,520,000

Q: At the beginning of the current period, Novak Corp. had balances in Accounts Receivable of $204,000…

A: Step 1: Tabular Summary: We start by presenting the beginning balances as given in the problem:…

Q: At the beginning of period, Ammar Co. had balances in account receivable of $ 400,000 and allowance…

A: Account receivable means the amount due from outsider for the goods or services rendered on account.…

Q: Doer Company reports year-end credit sales in the amount of $390,000 and accounts receivable of…

A: Sales are made on cash basis and credit basis. the amount to be collected from Sales made on credit…

Q: At the beginning of the year, Kullerud Manufacturing had a credit balance in its allowance for…

A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…

Q: At the beginning of period, Ammar Co. had balances in account receivable of $ 400,000 and allowance…

A: As per the guidelines, since the question has multiple sub-parts, the solution of the first four…

Q: A company uses the percent of sales method to determine its bad debts expense. At the end of the…

A: Net credit sales = Total credit sales - sales return and allowances = 28,000,000 - (800,000 -…

Q: At the beginning of the current period, Nash Ltd. had balances in Accounts Receivable of £200,000…

A: Journalizing is the process of recording all the relevant financial information for a certain period…

Q: At the beginning of the current period, Whispering Winds Corp. had balances in Accounts Receivable…

A: Table is as follows.

Q: The financial statements of the Sheffield Corp. reports net sales of $690150 and accounts receivable…

A: Accounts receivable turnover ratio is computed to determine the efficiency of the entity to collect…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is