Steelcase, Inc. reported the following amounts in its 2014 and 2013 10-K reports (years ended February 28, 2014 and February 22, 2013). ($ millions) 2014 2013 From the income statement: Net sales From the balance sheet: Accounts receivable, net Customer deposits From the disclosure on allowance for doubtful accounts: Balance at beginning of period Additions (reductions) charged to income Adjustments or deductions Balance at end of period To write-off uncollectible accounts. a. Prepare the journal entry to record accounts receivable written off as uncollectible in 2014. Also prepare the entry to record the provision for doubtful accounts (bad debts expense) for 2014. Enter answers in millions (as shown above). General Journal Description To record the provision for doubtful accounts. 0 → ♦ ♦ times $0 $3,089 $2,954 Debit 331.8 302.3 23.0 20.5 million 0 0 17.5 5.8 22.6 6.1 (3.3) (11.2) 20.0 17.5 0 0 Gross accounts receivable (in millions) Allowance as a % of gross receivables (Round to one decimal place.) b. Calculate Steelcase's gross receivables for the years given, and then determine the allowance for doubtful accounts as a percentage of 2014 Credit $ d. How much cash did Steelcase receive from customers in 2014? 0 0 0 0 c. Calculate Steelcase's accounts receivable turnover for 2014. (Use Accounts receivable, net for the calculation.) Round answer to one de 0 $ 0% 2013 0 0%
Steelcase, Inc. reported the following amounts in its 2014 and 2013 10-K reports (years ended February 28, 2014 and February 22, 2013). ($ millions) 2014 2013 From the income statement: Net sales From the balance sheet: Accounts receivable, net Customer deposits From the disclosure on allowance for doubtful accounts: Balance at beginning of period Additions (reductions) charged to income Adjustments or deductions Balance at end of period To write-off uncollectible accounts. a. Prepare the journal entry to record accounts receivable written off as uncollectible in 2014. Also prepare the entry to record the provision for doubtful accounts (bad debts expense) for 2014. Enter answers in millions (as shown above). General Journal Description To record the provision for doubtful accounts. 0 → ♦ ♦ times $0 $3,089 $2,954 Debit 331.8 302.3 23.0 20.5 million 0 0 17.5 5.8 22.6 6.1 (3.3) (11.2) 20.0 17.5 0 0 Gross accounts receivable (in millions) Allowance as a % of gross receivables (Round to one decimal place.) b. Calculate Steelcase's gross receivables for the years given, and then determine the allowance for doubtful accounts as a percentage of 2014 Credit $ d. How much cash did Steelcase receive from customers in 2014? 0 0 0 0 c. Calculate Steelcase's accounts receivable turnover for 2014. (Use Accounts receivable, net for the calculation.) Round answer to one de 0 $ 0% 2013 0 0%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Analysis of Accounts Receivable and Allowance for Doubtful Accounts
Steelcase, Inc. reported the following amounts in its 2014 and 2013 10-K reports (years ended February 28, 2014 and February 22, 2013).
2014
2013
($ millions)
From the income statement:
Net sales
From the balance sheet:
Accounts receivable, net
Customer deposits
From the disclosure on allowance for doubtful accounts:
Balance at beginning of period
Additions (reductions) charged to income
Adjustments or deductions
Balance at end of period
To write-off uncollectible accounts.
a. Prepare the journal entry to record accounts receivable written off as uncollectible in 2014.
Also prepare the entry to record the provision for doubtful accounts (bad debts expense) for 2014.
Enter answers in millions (as shown above).
General Journal
Description
◆
◆
To record the provision for doubtful accounts.
0
♦
times
$0
$3,089 $2,954
Debit
331.8
302.3
23.0 20.5
million
0
0
17.5 22.6
5.8
6.1
(3.3)
20.0
0
0
Gross accounts receivable (in millions)
Allowance as a % of gross receivables (Round to one decimal place.)
(11.2)
17.5
b. Calculate Steelcase's gross receivables for the years given, and then determine the allowance for doubtful accounts as a percentage of the gross receivables.
2014
Credit
$
d. How much cash did Steelcase receive from customers in 2014?
0
0
0
0
c. Calculate Steelcase's accounts receivable turnover for 2014. (Use Accounts receivable, net for the calculation.) Round answer to one decimal place.
0 $
0%
2013
0
0%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education