Question: 63 In 2015, Boyle Company had credit sales of $1,080,000 and granted sales discounts of $24,000. On January 1, 2015, Allowance for Doubtful Accounts had a credit balance of $26,400. During 2015, $45,000 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2015? Question: 64 Nosa Co. is a start-up company and expands the business aggressively. This company starts on January 1, 2015 and expects that the monthly sales can grow at a constant rate. The company expects sales on credit at the percentage below, with the remaining in cash. Sales growth rate 20% Credit sales percentage 80% Budgeted cash collection in March $747,491 As the company is preparing its schedule of cash collections for credit sales, the following collection curve (schedule) is being used: 50% in the month of sale 30% in the month following sale 15% in the second month following sale 5% uncollectible Required: Which amount is closest to the sales in January? A. $607,716 B. $865,151 C. $587,650 D. $648,864 E. $778,636
Question: 63 In 2015, Boyle Company had credit sales of $1,080,000 and granted sales discounts of $24,000. On January 1, 2015, Allowance for Doubtful Accounts had a credit balance of $26,400. During 2015, $45,000 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2015? Question: 64 Nosa Co. is a start-up company and expands the business aggressively. This company starts on January 1, 2015 and expects that the monthly sales can grow at a constant rate. The company expects sales on credit at the percentage below, with the remaining in cash. Sales growth rate 20% Credit sales percentage 80% Budgeted cash collection in March $747,491 As the company is preparing its schedule of cash collections for credit sales, the following collection curve (schedule) is being used: 50% in the month of sale 30% in the month following sale 15% in the second month following sale 5% uncollectible Required: Which amount is closest to the sales in January? A. $607,716 B. $865,151 C. $587,650 D. $648,864 E. $778,636
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question: 63
In 2015, Boyle Company had credit sales of $1,080,000 and granted sales discounts
of $24,000. On January 1, 2015, Allowance for Doubtful Accounts had a credit balance
of $26,400. During 2015, $45,000 of uncollectible accounts receivable were written off.
Past experience indicates that 3% of net credit sales become uncollectible. What should
be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2015?
Question: 64
Nosa Co. is a start-up company and expands the business aggressively.
This company starts on January 1, 2015 and expects that the monthly sales can
grow at a constant rate.
The company expects sales on credit at the percentage below, with the remaining
in cash.
Sales growth rate 20%
Credit sales percentage 80%
Budgeted cash collection in March $747,491
As the company is preparing its schedule of cash collections for credit sales, the
following collection curve (schedule) is being used:
50% in the month of sale
30% in the month following sale
15% in the second month following sale
5% uncollectible
Required:
Which amount is closest to the sales in January?
A. $607,716
B. $865,151
C. $587,650
D. $648,864
E. $778,636
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