Primo Industries collected $226,000 from customers in 2018. Of the amount collected, $113.000 was from services performed in 2017. In addition, Primo performed services worth $156,000 in 2018, which will not be collected until 2019. Primo Industries also paid $182,000 for expenses in 2018. Of the amount paid, $142,000 was for expenses incurred on account in 2017. In addition, Primo incurred $153,000 of expenses in 2018, which will not be paid until 2019. Compute 2018 cash-basis net income.
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- Ivanhoe Industries collected $104,000 from customers in 2022. Of the amount collected, $24,800 was for services performed in 2021. In addition, Ivanhoe performed services worth $41,600 in 2022, which will not be collected until 2023. Ivanhoe Industries also paid $72,200 for expenses in 2022. Of the amount paid, $30,200 was for expenses incurred on account in 2021. In addition, Ivanhoe incurred $40,800 of expenses in 2022, which will not be paid until 2023. (a) Compute 2022 cash-basis net income. Cash-basis net income $ (b) Compute 2022 accrual-basis net income. Accrual-basis net income $DogFor 2017, Sampsell Inc. computed its annual postretirement expense as $240,900. Sampsell’s contribution to the plan during 2017 was $180,000. Prepare Sampsell’s 2017 entry to record a postretirement expense, assuming Sampsell has no OCI amounts.
- Geisel, Inc. reported net sales revenue of $522,000 in 2018 and $628,000 in 2019. The company’s ending net receivables were $112,000 during 2017 and $131,000 during 2018. At December 31, 2019, the company had Accounts Receivable of $144,000 and an unadjusted debit balance in its Allowance for Doubtful Accounts account of $1,800. The company reported Bad Debt Expense of $9,990 during 2019. Required: Determine the net receivables at December 31, 2019. Calculate the receivables turnover ratio for 2018 and 2019. Calculate the days to collect for 2018 and 2019.Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $290,000 of services on account. In 2021, the company wrote off uncollectible accounts of $11,700. By the end of 2021, cash collections on accounts receivable totaled $245,700. Pincus estimates that 15% of the accounts receivable balance at 12/31/2021 will prove uncollectible.Required:1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2021, the allowance account had a credit balance of $75,000. Credit sales for 2021 totaled $2,400,000 and the year-end accounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31.Required:1. Does this situation describe a loss contingency? Explain.2. What is the bad debt expense that Manda Panda should report in its 2021 income statement?3. Prepare the appropriate journal entry to record the contingency.4. What is the net accounts receivable value Manda Panda should report in its 2021 balance sheet?
- Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $239,000 of services on account. In 2021, the company wrote off uncollectible accounts of $9,600. By the end of 2021, cash collections on accounts receivable totaled $201,600. Pincus estimates that 10% of the accounts receivable balance at 12/31/2021 will prove uncollectible. Required:1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021?Presented below are three independent situations.1. Novak Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Novak’s past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Novak’s liability for stamp redemptions was $14,086,200 at December 31, 2019. Additional information for 2020 is as follows. Stamp service revenue from stamps sold to licensees $8,609,200 Cost of redemptions (stamps sold prior to 1/1/20) 5,666,400 If all the stamps sold in 2020 were presented for redemption in 2021, the redemption cost would be $5,420,400. What amount should Novak report as a liability for stamp redemptions at December 31, 2020? Liability for stamp redemptions at December 31, 2020 $ 2. In packages of its products, Splish Inc. includes coupons that may be presented at retail stores to obtain discounts on other Splish products. Retailers are reimbursed for the face…Hogenson Company estimates bad debt expense at 0.60% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $481,000 and $1,480 respectively on December 31, 2018. During 2019, Hogenson Company's credit sales and collections were $325,000 and $316,000, respectively, and $1,870 in accounts receivable were written off. Determine the company’s net realizable value of accounts receivable on December 31, 2019. A. $488,440.B. $484,700.C. $486,570. D. $469,020.
- At the end of 2023, Ayayai Corp. has accounts receivable of $2.90 million and an allowance for expected credit losses of $115,000. On January 16, 2024, Ayayai determined that its $22,400 receivable from Blossom Company will not be collected, and management has authorized its write-off. On January 31, 2024, Ayayai received notification that the company will receive $0.15 for every $1.00 of accounts receivable relating to Sunland Company The company had previously written off 100% of the amount due from Sunland ($60,500). (a) Your answer is partially correct. Prepare the journal entry for Ayayai to write-off the Blossom receivable and any journal entry needed to reflect the notice regarding Sunland. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Blossom Company accounts receivable write-off:…Jayco Inc. started its operations in 2022. Its sales during 2022, all on account, totalled $700,000. The company collected $500,000 in cash from customers during the year and wrote off $8,000 in uncollectible accounts. The company set up an allowance for doubtful accounts at December 31, 2022, its fiscal year-end, and determined the account balance to be $14,000. The unadjusted balances of selected accounts at December 31, 2023 are as follows: Accounts receivable $ 300,000 Allowance for doubtful accounts (debit) 10,000 Sales revenue (including 80 percent in sales on account) 800,000 Aging of the accounts receivable on December 31, 2023, resulted in an estimate of $11,000 in potentially uncollectible accounts. Required: 2. Prepare the journal entries to record all the transactions during 2023 and post them to appropriate T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)…Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $250,000 of services on account. In 2021, the company wrote off uncollectible accounts of $10,000. By the end of 2021, cash collections on accounts receivable totaled $210,000. Pincus estimates that 20% of the accounts receivable balance at 12/31/2021 will prove uncollectible.Required:1. What journal entry did Pincus record to write off uncollectible accounts during 2021?2. What journal entry should Pincus record to recognize bad debt expense for 2021?