Pepsi Inc has the following information for the year 2015. Accounts Receivables, beginning of the year USD 400, 000 Accounts Receivable, year ending, before any write-off USD 470, 000 Allowance for Doubtful Accounts USD 13, 000 Sales for the Year Ended Dec 31, 2015 USD 1, 350, 000 If Pepsi Inc wrote off USD 10,000 in uncollectible receivables in 2015 and estimated bad debts to be USD 23, 000 for the year 2015 using the allowance method (this amount is the balance of Allowance for Doubtful Accounts for the year ending December 31, 2015), what is the cash realizable value of the AR?

Pepsi Inc has the following information for the year 2015. Accounts Receivables, beginning of the year USD 400, 000 Accounts Receivable, year ending, before any write-off USD 470, 000 Allowance for Doubtful Accounts USD 13, 000 Sales for the Year Ended Dec 31, 2015 USD 1, 350, 000 If Pepsi Inc wrote off USD 10,000 in uncollectible receivables in 2015 and estimated bad debts to be USD 23, 000 for the year 2015 using the allowance method (this amount is the balance of Allowance for Doubtful Accounts for the year ending December 31, 2015), what is the cash realizable value of the AR?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

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Aerospace Electronics reports $567,000 in credit sales for 2018 and $632,500 in 2019. They have a $499,000 accounts receivable balance at the end of 2018, and $600,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 5% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 7% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Aerospace Electronics in 2019 as a result of its earnings management.
Clovis Enterprises reports $845,500 in credit sales for 2018 and $933,000 in 2019. It has a $758,000 accounts receivable balance at the end of 2018 and $841,000 at the end of 2019. Clovis uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably, Clovis changes bad debt estimation to the balance sheet method at 5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Clovis Enterprises in 2019 as a result of its earnings management.
A company has the following information for the year 2015. Accounts Receivables, beginning of the year USD 420, 000 Accounts Receivable, year ending, before any write-off USD 490, 000 Allowance for Doubtful Accounts, beginning of the year USD 15, 000 Sales for the Year Ended Dec 31, 2015 USD 1, 650, 000 If the company wrote off USD 13,000 in uncollectible receivables in 2015 and estimated bad debts to be USD 27, 000 for the year 2015 using the allowance method (this amount is the balance of Allowance for Doubtful Accounts for the year ending December 31, 2015), what is the cash realizable value of the AR?
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Accounts Receivables, beginning of the year	USD 400, 000
Accounts Receivable, year ending, before any write-off	USD 470, 000
Allowance for Doubtful Accounts	USD 13, 000
Sales for the Year Ended Dec 31, 2015	USD 1, 350, 000