Required information [The following information applies to the questions displayed below.] The following is a portion of the current asset section of the balance sheets of HIROE Company, at December 31, 2023 and 2022: Accounts receivable, less allowance for uncollectible accounts of $8,000 and $4,600, respectively 12/31/23 $ 150,000 12/31/22 $ 134,100 Required: b. If bad debts expense for 2023 totaled $10,800, what was the amount of accounts receivable written off during the year? (Hint. Use the T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.) c. The December 31, 2023, Allowance account balance includes $3,200 for a past due account that is not likely to be collected. This account has not been written off. 1. If it had been written off, will there be any effect of the write off on the working capital at December 31, 2023? 2. If it had been written off, will there be any effect of the write off on net income and ROI for the year ended December 31, 2023? d. The level of HIROE's sales in 2023 is probably higher as compared to 2022. e. 1. Calculate the ratio of the Allowance for Uncollectible Accounts balance to the Accounts Receivable balance at December 31, 2023 and 2022.
Required information [The following information applies to the questions displayed below.] The following is a portion of the current asset section of the balance sheets of HIROE Company, at December 31, 2023 and 2022: Accounts receivable, less allowance for uncollectible accounts of $8,000 and $4,600, respectively 12/31/23 $ 150,000 12/31/22 $ 134,100 Required: b. If bad debts expense for 2023 totaled $10,800, what was the amount of accounts receivable written off during the year? (Hint. Use the T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.) c. The December 31, 2023, Allowance account balance includes $3,200 for a past due account that is not likely to be collected. This account has not been written off. 1. If it had been written off, will there be any effect of the write off on the working capital at December 31, 2023? 2. If it had been written off, will there be any effect of the write off on net income and ROI for the year ended December 31, 2023? d. The level of HIROE's sales in 2023 is probably higher as compared to 2022. e. 1. Calculate the ratio of the Allowance for Uncollectible Accounts balance to the Accounts Receivable balance at December 31, 2023 and 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
The following is a portion of the current asset section of the balance sheets of HIROE Company, at December 31, 2023
and 2022:
Accounts receivable, less allowance for uncollectible accounts
of $8,000 and $4,600, respectively
12/31/23
$ 150,000
12/31/22
$ 134,100
Required:
b. If bad debts expense for 2023 totaled $10,800, what was the amount of accounts receivable written off during the year? (Hint. Use
the T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.)
c. The December 31, 2023, Allowance account balance includes $3,200 for a past due account that is not likely to be collected. This
account has not been written off.
1. If it had been written off, will there be any effect of the write off on the working capital at December 31, 2023?
2. If it had been written off, will there be any effect of the write off on net income and ROI for the year ended December 31, 2023?
d. The level of HIROE's sales in 2023 is probably higher as compared to 2022.
e. 1. Calculate the ratio of the Allowance for Uncollectible Accounts balance to the Accounts Receivable balance at December 31,
2023 and 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23bd4a69-1fc4-4ab7-a754-b46ed29207ab%2F18ca9540-83fe-4526-89ce-2972c657ea55%2F3lofhxs_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
The following is a portion of the current asset section of the balance sheets of HIROE Company, at December 31, 2023
and 2022:
Accounts receivable, less allowance for uncollectible accounts
of $8,000 and $4,600, respectively
12/31/23
$ 150,000
12/31/22
$ 134,100
Required:
b. If bad debts expense for 2023 totaled $10,800, what was the amount of accounts receivable written off during the year? (Hint. Use
the T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.)
c. The December 31, 2023, Allowance account balance includes $3,200 for a past due account that is not likely to be collected. This
account has not been written off.
1. If it had been written off, will there be any effect of the write off on the working capital at December 31, 2023?
2. If it had been written off, will there be any effect of the write off on net income and ROI for the year ended December 31, 2023?
d. The level of HIROE's sales in 2023 is probably higher as compared to 2022.
e. 1. Calculate the ratio of the Allowance for Uncollectible Accounts balance to the Accounts Receivable balance at December 31,
2023 and 2022.
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