Compute 2017 income Question:Concordia Industries Ltd. collected Pounds 112,000 from customers in 2017. Ofthe amount collected, Pounds 30,000 was from revenue accrued from servicesperformed in 2016. In addition, Concordia recorded Pounds 44,000 in revenue in2017, which will not be collected until 2018.Concordia Industries also paid Pounds 72,000 for expenses in 2017. Of the amountpaid, Pounds 27,000 was for expenses incurred on account in 2016. In addition,Concordia incurred Pounds 37,000 in expenses in 2017, which will not be paiduntil 2018.Compute 2017 cash-basis net income.

Step 1: There are two types of accounting method.Cash basis of accounting Accrual basis of…

Answered: Question: Concordia Industries Ltd.…

College Accounting (Book Only): A Career Approach

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ChapterB: Bad Debts

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Problem 2P: Hardys Landscape Services total revenue on account for 2018 amounted to 273,205. The company, which...

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Bold Company’s 2016 income statement reported total credit revenue of $250,000. Bold’s accounts receivable balance on January 1, 2016 was $30,000, and its December 31, 2016 accounts receivable balance was $10,000. Bold’s accounts payable balance on January 1, 2016 was $25,000, and its December 31, 2016 accounts payable balance was $35,000. How much did Bold collect from customers during 2016?
Primo Industries collected $107,474 from customers in 2015. Of the amount collected, $27,373 was from services performed in 2014. In addition, Primo performed services worth $41,264 in 2015, which will not be collected until 2016. Primo Industries also paid $76,280 for expenses in 2015. Of the amount paid, $29,224 was for expenses incurred on account in 2014. In addition, Primo incurred $42,536 of expenses in 2015, which will not be paid until 2016. Compute 2015 cash-basis net income.
At the close of its first year of operations, December 31, 2017, Ming Company had accounts receivable of $1,620,000, after deducting the related allowance for doubtful accounts. During 2017, the company had charges to bad debt expense of $270,000 and wrote off, as uncollectible, accounts receivable of $120,000. What should the company report on its balance sheet at December 31, 2017, as accounts receivable before the allowance for doubtful accounts?
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.
Charter Corporation, which began business in 2016, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales made during 2016 and 2017: Installment sales Cost of installment sales Cash collections on installment sales during: 2016 2017 Gross profit 2016 2016 $380,000 190,000 170,000 Required: 1. How much gross profit should Charter recognize in 2016 and 2017 from installment sales? Balance in deferred gross profit account 2017 2017 $370,000 259,000 120,000 130,000 2. What should be the balance in the deferred gross profit account at the end of 2016 and 2017? 2016 2017
The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2016, included the following income accounts: Account Title Credits Debits Sales revenue 2,300,000 1,400,000 Cost of goods sold Selling and administrative expenses Interest expense Unrealized holding gains on investment securities 420,000 40,000 80,000 The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 30%. One million shares of common stock were outstanding throughout 2016. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2016, including appropriate EPS disclosures.
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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.
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Ajman Corporation had a 1/1/18 balance in the Allowance for Doubtful Accounts of $30,000. During 2018, it wrote off $21,600 of accounts and collected $6,300 on accounts previously written off. The balance in Accounts Receivable was $600,000 at 1/1 and $720,000 at 12/31. What should Ajman report as its Allowance for Doubtful Accounts at 12/31/18?
Allowance Method for Accounting for Bad Debts At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $217,000, and the balance in Allowance for Doubtful Accounts was $3,700. EZ Tech's sales in 2017 were $1,630,000, 80% of which were on credit. Collections on account during the year were $1,040,000. The company wrote off $6,000 of uncollectible accounts during the year. Required: 2. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 4% of credit sales and (b) amounts expected to be uncollectible are 7% of the year-end accounts receivable. a. Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 4% of credit sales. Activity Investing Accounts Allowance for Doubtful Accounts Decrease, Bad Debts Expense Decrease Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation?If a financial…
Primo Industries collected $105,000 from customers in 2014. Of the amount collected, $25.000 was from services performed in 2013. In addition, Primo performed services worth $40,000 in 2014, which will not be collected until 2015. Primo Industries also paid $72,000 for expenses in 2014. Of the amount paid, $30,000 was for expenses incurred on account in 2013. In addition, Primo incurred $42,000 of expenses in 2014, which will not be paid until 2015. a. Compute 2014 cash-basis net income. b. Compute 2014 accrual-basis net income.

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