Provide solution for this question Primo Industries collected $104,474 from customers in2015. Of the amount collected, $25,373 was fromservices performed in 2014. In addition, Primo performedservices worth $38,264 in 2015, which will not becollected until 2016.Primo Industries also paid $71,280 for expenses in 2015.Of the amount paid, $29,224 was for expenses incurredon account in 2014. In addition, Primo incurred $40,536of expenses in 2015, which will not be paid until 2016.a. Compute 2015 cash-basis net income.b. Compute 2015 accrual-basis net income.

Step 1: Define Cash Basis and Accrual BasisThe cash basis of accounting looks at cash flows to…

Answered: Primo Industries collected $104,474…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 12Q: Berry Farms has an accounts receivable balance at the end of 2018 of $425,650. The net credit sales...

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At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $143,000, and the balance in Allowance for Doubtful Accounts was $2,450. EZ Tech's sales in 2017 were $1,070,000, 80% of which were on credit. Collections on account during the year were $690,000. The company wrote off $4,000 of uncollectible accounts during the year. Identify and analyze the transactions related to the collections of cash during 2017. Activity Operating Accounts Cash Increase, Accounts Receivable Decrease Statement(s) Balance Sheet only How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues – Expenses = Income…
TLC Inc. manufactures large-scale, high-performance computer systems. In a recent annual report, the balance sheet included the following information ($ in millions): Current assets: Receivables, less allowances of $270 in 2015 and $297 in 2014 2015 Required: 1. Compute the following ($ in millions): $ 5,477 2014 $ 5,913 In addition, the income statement reported sales revenue of $39,794 ($ in millions) for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $40,737 ($ in millions). There were no recoveries of accounts receivable previously written off. a. The net amount of bad debts written off or reinstated by EMC during 2015. b. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015. 2. Suppose that EMC had used the direct write-off method to account for bad debts. Compute the following ($ in millions): a. The accounts…
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In 2015, S began selling S Company gift cards. During 2015, S sold $4,600,000 of these gift cards. During 2015, customers redeemed $2,950,000 of S’s gift cards. There are no expiration dates on S’s gift cards. S estimates that 4% of its gift cards sold will never be redeemed. S operates in jurisdictions where they are not required to remit unredeemed gift card balances to government agencies under unclaimed property laws. S only prepares AJEs every 12-31. Prepare the 2015 entries S made: to reflect gift card sales. to reflect gift card redemptions. to record 12-31’s AJE for estimated gift card breakage income.
At the beginning of 2017, Miyazaki Company's Accounts Receivable balance was $105,000, and the balance in Allowance for Doubtful Accounts was $1,950. Miyazaki's sales in 2017 were $787,500, 80% of which were on credit. Collections on account during the year were $502,500. The company wrote off $3,000 of uncollectible accounts during the year. Identify and analyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 6% of the year-end accounts receivable.
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The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru’s fiscal year ends on December 31. (a.) In October 2018, sold $3,100 of gift cards, and redeemed $510 of those gift cards. (b.) In November 2018, sold $4,100 of gift cards, and redeemed $1,410 of October gift cards and $710 of November gift cards. (c.) In December 2018, sold $3,100 of gift cards, and redeemed $210 of October gift cards, $2,100 of November gift cards, and $410 of December gift cards. (d.) Sunbru views a gift card to be “broken” (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30. Required:1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage.2. Determine the balance of the deferred revenue liability to be…

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