Problem 2 The financial statements of Gideon International reported the following accounts. Accounts Receivable - January 1, 2019 Allowance for Uncollectible Accounts - January 1, 2019 2019 Sales 10,000,000 Collections 8,720,000 The cash collected from customers included a 20,000 recovery from a customer whose account was written off in prior year. On November 15, a customer settled his overdue account by issuing a 15%, 4-month note for 400,000. During 2019, account of 100,000 were written off as worthless. Analysis of the account receivable at December 31, 2019 revealed that 600,000 were considered past due. Management's estimate of probable loss on past due accounts is 20% and on current accounts at 5%. 3. Determine the December 31, 2019 Accounts Receivable a. 800,000 b. 1,200,000 c. 1,920,000 4. Determine the December 31, 2019 amortized cost of accounts receivable. a. 1,010,000 1,200,000 60,000 b. 1,390,000 c. 1,810,000 d. 2,000,000 d. 2,190,000

Problem 2 The financial statements of Gideon International reported the following accounts. Accounts Receivable - January 1, 2019 Allowance for Uncollectible Accounts - January 1, 2019 2019 Sales 10,000,000 Collections 8,720,000 The cash collected from customers included a 20,000 recovery from a customer whose account was written off in prior year. On November 15, a customer settled his overdue account by issuing a 15%, 4-month note for 400,000. During 2019, account of 100,000 were written off as worthless. Analysis of the account receivable at December 31, 2019 revealed that 600,000 were considered past due. Management's estimate of probable loss on past due accounts is 20% and on current accounts at 5%. 3. Determine the December 31, 2019 Accounts Receivable a. 800,000 b. 1,200,000 c. 1,920,000 4. Determine the December 31, 2019 amortized cost of accounts receivable. a. 1,010,000 1,200,000 60,000 b. 1,390,000 c. 1,810,000 d. 2,000,000 d. 2,190,000

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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