Required information [The following information applies to the questions displayed below.] Ricky's Plano Rebullding Company has been operating for one year. On January 1, at the start of its second year, Its Income statement accounts had zero balances and its balance sheet account balances were as follows: $ 7,800 Accounts Payable 38,750 Deferred Revenue (deposits) 1,450 Notes Payable (long-term) 9,100 Common Stock 9,550 Retained Earnings 28,680 $ 10,900 5,800 57,750 15,500 5,300 Cash Accounts Receivable Supplies Equipment Land Buildings Following are the January transactions: a. Recelved a $755 deposit from a customer who wanted her plano rebult In February. b. Rented a part of the bullding to a bicycle repalr shop: $340 rent recelved for January. c. Delivered five rebullt planos to customers who pald $20,900 in cash. d. Delivered two rebullt planos to customers for $10,400 charged on account e. Recelved $8.400 from customers as payment on their accounts. f. Recelved an electric and gas utility bill for $835 for January services to be pald in February. g. Ordered $1,050 In supplies. h. Pald $2.000 on account In January.

Required information [The following information applies to the questions displayed below.] Ricky's Plano Rebullding Company has been operating for one year. On January 1, at the start of its second year, Its Income statement accounts had zero balances and its balance sheet account balances were as follows: $ 7,800 Accounts Payable 38,750 Deferred Revenue (deposits) 1,450 Notes Payable (long-term) 9,100 Common Stock 9,550 Retained Earnings 28,680 $ 10,900 5,800 57,750 15,500 5,300 Cash Accounts Receivable Supplies Equipment Land Buildings Following are the January transactions: a. Recelved a $755 deposit from a customer who wanted her plano rebult In February. b. Rented a part of the bullding to a bicycle repalr shop: $340 rent recelved for January. c. Delivered five rebullt planos to customers who pald $20,900 in cash. d. Delivered two rebullt planos to customers for $10,400 charged on account e. Recelved $8.400 from customers as payment on their accounts. f. Recelved an electric and gas utility bill for $835 for January services to be pald in February. g. Ordered $1,050 In supplies. h. Pald $2.000 on account In January.

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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Keel Company's December 31 balances from the prior year related to accounts receivable follow. Accounts receivable (Dr.) Allowance for doubtful accounts (Cr.) $500,000 10,000 During the current year, $15,000 of accounts receivable is considered uncollectible, and no more effort to collect these accounts will be made. Total sales for the current year are $2,000,000, of which $400,000 are cash sales. A total of $1,500,000 cash was collected during the current year from sales that were originally made on account. Required a. Assuming that Keel applies the allowance method to estimate net accounts receivable and uses 10% of accounts receivable as its estimate of expected credit losses, prepare the disclosure on gross and net accounts receivable on the balance sheet at December 31 of the current year. • Note: Do not use negative signs in your answers. Balance Sheet, December 31 Accounts receivable Less: Allowance for doubtful accounts Accounts receivable, net 0
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