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show excel work  please all solve question please

show excel work  please all solve question please

FINANCIAL ACCOUNTING
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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show excel work  please all solve question please

Information from a sciences and publishing company follows ($ millions). Year 7 a. For Year Ended December 31 From income statement Net income.... Bad debt expense. Operating revenue. December 31 From balance sheet Accounts receivable, net of allowance for doubtful accounts (Year 8, $212; Year 7, $183).. C. Year 8 $ 333 105 3,719 $ 291 81 3,534 For both Year 8 and Year 7, compute and comment on 1. The relation between bad debt expense and operating revenue. Year 8 $951 $972 Bad debt expense on accounts receivable is substantial in relation to earnings. Assume a corporate tax rate of 40%. Information on accounts receivable written off and recoveries of accounts receivable previously written off was not available from the annual reports. Year 6 Required What effect would each of the following have on Year 8 net income and Year 8 ending balance sheet ac- counts? Ignore differences between tax and financial reporting systems. $ 496 65 3,074 Year 7 1. Failure to record any bad debt expense. 2. Failure to write off a worthless account of $0.6 million. b. Assuming insignificant recoveries of bad debts previously written off, estimate write-offs of accounts receiv- able in Year 8. 2. The rate of uncollectible accounts as a percentage of gross accounts receivable. 3. The relation between bad debt expense and write-offs.
Transcribed Image Text:Information from a sciences and publishing company follows ($ millions). Year 7 a. For Year Ended December 31 From income statement Net income.... Bad debt expense. Operating revenue. December 31 From balance sheet Accounts receivable, net of allowance for doubtful accounts (Year 8, $212; Year 7, $183).. C. Year 8 $ 333 105 3,719 $ 291 81 3,534 For both Year 8 and Year 7, compute and comment on 1. The relation between bad debt expense and operating revenue. Year 8 $951 $972 Bad debt expense on accounts receivable is substantial in relation to earnings. Assume a corporate tax rate of 40%. Information on accounts receivable written off and recoveries of accounts receivable previously written off was not available from the annual reports. Year 6 Required What effect would each of the following have on Year 8 net income and Year 8 ending balance sheet ac- counts? Ignore differences between tax and financial reporting systems. $ 496 65 3,074 Year 7 1. Failure to record any bad debt expense. 2. Failure to write off a worthless account of $0.6 million. b. Assuming insignificant recoveries of bad debts previously written off, estimate write-offs of accounts receiv- able in Year 8. 2. The rate of uncollectible accounts as a percentage of gross accounts receivable. 3. The relation between bad debt expense and write-offs.
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