Suppose Hearts, Inc., reported net receivables of $2,856 million and $2,628 million at January 31, 20X7 and 20X6, after subtracting allowances of $74 million and $69 million at these respective dates. Hearts earned total revenue of $54,333 million ( on account) and recorded doubtful-account expense of $18 million for the year ended January 31, 20X7. Requirement 1. Use this information to measure the following amounts for the year ended January 31, 20X7: a. Write-offs of uncollectible receivables. b. Collections from customers. Requirement 1a. Use this information to measure the write-offs of uncollectible receivable amounts for the year ended January 31, 20X7 Post the known transactions to the Allowance for Uncollectible Accounts to solve for the write-offs amount. (Enter amounts in millions of dollars as provided to you in the problem statement. Leave unused cells blank.) Allowance for Uncollectible Accounts Requirement 1b. Use this information to measure the collections from customers for the year ended January 31, 20X7. Post the known transactions to the Accounts Receivable to solve for the collections from customers amount. (Enter amounts in millions of dollars as provided to you in the problem statement. Leave unused cells blank.)
Suppose Hearts, Inc., reported net receivables of $2,856 million and $2,628 million at January 31, 20X7 and 20X6, after subtracting allowances of $74 million and $69 million at these respective dates. Hearts earned total revenue of $54,333 million ( on account) and recorded doubtful-account expense of $18 million for the year ended January 31, 20X7. Requirement 1. Use this information to measure the following amounts for the year ended January 31, 20X7: a. Write-offs of uncollectible receivables. b. Collections from customers. Requirement 1a. Use this information to measure the write-offs of uncollectible receivable amounts for the year ended January 31, 20X7 Post the known transactions to the Allowance for Uncollectible Accounts to solve for the write-offs amount. (Enter amounts in millions of dollars as provided to you in the problem statement. Leave unused cells blank.) Allowance for Uncollectible Accounts Requirement 1b. Use this information to measure the collections from customers for the year ended January 31, 20X7. Post the known transactions to the Accounts Receivable to solve for the collections from customers amount. (Enter amounts in millions of dollars as provided to you in the problem statement. Leave unused cells blank.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:Suppose Hearts, Inc., reported net receivables of $2,856 million and $2,628 million at January 31, 20X7 and 20X6, after subtracting allowances of $74 million and $69 million at these respective dates. Hearts earned total revenue of $54,333 million (all
on account) and recorded doubtful-account expense of $18 million for the year ended January 31, 20X7.
Requirement
1. Use this information to measure the following amounts for the year ended January 31, 20X7:
a.
Write-offs of uncollectible receivables.
b.
Collections from customers.
(...)
Requirement 1a. Use this information to measure the write-offs of uncollectible receivable amounts for the year ended January 31, 20X7.
Post the known transactions to the Allowance for Uncollectible Accounts to solve for the write-offs amount. (Enter amounts in millions of dollars as provided to you in the problem statement. Leave unused cells blank.)
Allowance for Uncollectible Accounts
Requirement 1b. Use this information to measure the collections from customers for the year ended January 31, 20X7.
Post the known transactions to the Accounts Receivable to solve for the collections from customers amount. (Enter amounts in millions of dollars as provided to you in the problem statement. Leave unused cells blank.)
Accounts Receivable
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