Presented here is basic financial information (in millions) from the annual reports of Cullumber and Pharoah. Sales Allowance for doubtful accounts, Jan. 1 Allowance for doubtful accounts, Dec. 31 Accounts receivable balance (gross), Jan. 1 Accounts receivable balance (gross), Dec. 31 Accounts receivable turnover Average collection period Cullumber Cullumber $22,000 82.0 88.0 2,500.0 2,800.0 Pharoah $14,100 Calculate the accounts receivable turnover and average collection period for both companies. (Round answers to 1 decimal place, e.g. 15.2. Use 365 days for calculation.) 114 days 120 1,900 times 1,400 Pharoah times days

Presented here is basic financial information (in millions) from the annual reports of Cullumber and Pharoah. Sales Allowance for doubtful accounts, Jan. 1 Allowance for doubtful accounts, Dec. 31 Accounts receivable balance (gross), Jan. 1 Accounts receivable balance (gross), Dec. 31 Accounts receivable turnover Average collection period Cullumber Cullumber $22,000 82.0 88.0 2,500.0 2,800.0 Pharoah $14,100 Calculate the accounts receivable turnover and average collection period for both companies. (Round answers to 1 decimal place, e.g. 15.2. Use 365 days for calculation.) 114 days 120 1,900 times 1,400 Pharoah times days

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $15,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Expected Percent Uncollectible 1.20% Accounts Receivable $ 820,000 328,000 65,600 32,800 13,120 Accounts Receivable Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31. X Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles X X Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due X X Percent Uncollectible (#.##%) || = = = 1.95 6.45 32.50 67.00 = Estimated Uncollectible
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balance of $6,000; and sales for the year total $3,040,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $21,600. a. Determine the amount of the adjusting entry for uncollectible accounts.$ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful Accounts $ Bad Debt Expense $ c. Determine the net realizable value of accounts receivable.$
at the end of the current year accounts receivable has a balance of 625,000 allowance for doubtful accounts has a credit balance of 5,500 and sales for the year total 2,810,000 using the Aging method the balance of allowance for doubtful accounts is estimated as 29,700 Determine the amount of the adjusting entry for uncollectible accounts Determine the adjusted balances of accounts receivable, allowance for doubtful accounts, and bad debit expense. Determine the net realizable value of accounts receivable
The ADA has the below table regarding its account receivable: Age of Accounts Balance, June 30 Estimated Percentage Uncollectible 1-30 days $130,000 2.00% 31-60 days 70,000 5.00% 61-90 days 32,500 20.00% Over 90 days 3,000 50.00% If the opening balance of Allowance for Doubtful accounts is $7,050, the entries to record estimated uncollectible receivables this year will be: Select one: a. Bad debt expense $7,050 Allowance for doubtful accounts $7,050 b. Allowance for doubtful accounts $14,100 Account receivable $14,100 c. Bad debt expense $14,100 Allowance for doubtful accounts $14,100 d. Account receivable $7,100 Bad debt expense $7,100
reported the following information: At the beginning of current year, Nostalgia Company Accounts receivable Allowance for doubtful accounts 1,500,000 60,000 The following summary transactions affecting accounts receivable occurred during the current year: Sales- all on account 2/10, 1/15, n /60 7,935,000 Cash received from customers 8,000,000 The cash received from customers included the following. Customers paying within the 10-day discount period 4,410,000 Customers paying within the 15-day discount period 2,475,000 Recovery of accounts written off 15,000 Customers paying beyond the discount period Accounts receivable written off as worthless 55,000 Credit memoranda for sales return 30,000 Required: a. Prepare journal entries to record the transactions. b. Prepare the adjustment for doubtful accounts if the entity follows the percentage of accounts receivable consistently. c. Determine the net realizable value of accounts receivable at year-end?
Selected data for the Erdin Corporation for the year ended Decmeber 31, 20x5 is provided below: Credit sales Accounts receivable written off Recoveries of previously written of accounts receivable Allowance for doubtful accounts balance, January 1, 20x5 Accounts receivable, December 31, 20x5 Erdin estimates that 0.8% of sales will be uncollectible. Required - $4,500,000 36,500 1,800 33,000 cr. 625,000 Write the journal entries to record the accounts receivable written off, the recoveries and the bad debt expense. Calculate the ending balance in the allowance for doubtful account at December 31, 20x5. Note that the accounts receivable and recoveries have been accounted for in the ending Accounts Receivable balance.
On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as below. Ignore GST. Accounts receivable 1/6 balance 849,555 Allowance for doubtful debts 1/6 balance 12,100 During June, the following transactions occurred: Revenue earned on credit, $1,195,000. Sales returns, $24,100. Accounts receivable collected, $1,400,000. Accounts written off as uncollectible, $15,851. Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $13,500 on the balance sheet as at 30 June. Ignore GST. Required: (a) Prepare general journal entries to record the four transactions and to adjust the Allowance for Doubtful Debts account. (b) Showhowaccountsreceivableandtheallowancefordoubtfuldebtswouldappearonthebalance sheet at 30 June. (c) On 29 June, Kim Ltd, whose $2,400 account had been written off as uncollectable in June,…
A trial balance before adjustment included the following: Accounts receivable Allowance for doubtful accounts Sales revenue Sales returns and allowances Debit $140,000 Credit $ 730 610,000 8,000 Estimates of uncollectible accounts are expected to be 5% of gross accounts receivable Use the information above to determine the following: 1) Net sales (on the income statement for the period)? 2) Accounts receivable (on the balance sheet at the end of the period)? 3) Bad debt expense? 4) Allowance for doubtful accounts had a credit balance of $5,500 at the beginning of the period. What amount of receivables was written off during the period? 5) If an additional $500 of receivables were written off during the period, what would bad debt expense have been?
The following information is available for Market, Incorporated and Supply, Incorporated at December 31. Accounts Accounts receivable Allowance for doubtful accounts Sales revenue Required Market, Incorporated Supply, Incorporated $56,800 $80,200 3,048 666,960 2,456 887,100 a. What is the accounts receivable turnover for each of the companies? b. What is the average days to collect the receivables? c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the average days to collect the receivables? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to the nearest whole number.) Company Market Supply Average Collection Period days days
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The following information is available for Market, Incorporated and Supply, Incorporated at December 31: Accounts Market, Incorporated Supply, Incorporated $ 58,600 $ 79,600 Accounts receivable Allowance for doubtful accounts 3,148 Sales revenue 636,960 2,556 917,100 Required: 1. What is the accounts receivable turnover for each of the companies? 2. What is the average days to collect the receivables? 3. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company