The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $11,500 Accounts Receivable 6,300 Supplies 2,300 Equipment 18,500 Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 6,400 8,900 16,500 6,800 $38,600 $38,600 The following is a summary of the transactions for the year: 1. March 2. May 3. June 4. August 12 Provide services to customers, $43,000, of which $19,300 is on account. 2 Collect on accounts receivable, $16,300. 30 Issue shares of common stock in exchange for $4,000 cash. 1 Pay salaries of $8,900 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $11,300. 6. October 19 Purchase equipment for $6,300 cash. 7. December 30 Pay $1,200 cash dividends to stockholders.

The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $11,500 Accounts Receivable 6,300 Supplies 2,300 Equipment 18,500 Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 6,400 8,900 16,500 6,800 $38,600 $38,600 The following is a summary of the transactions for the year: 1. March 2. May 3. June 4. August 12 Provide services to customers, $43,000, of which $19,300 is on account. 2 Collect on accounts receivable, $16,300. 30 Issue shares of common stock in exchange for $4,000 cash. 1 Pay salaries of $8,900 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $11,300. 6. October 19 Purchase equipment for $6,300 cash. 7. December 30 Pay $1,200 cash dividends to stockholders.

Name: The general ledger of Red Storm Cleaners at January 1, 2021, includes
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:AccountsCashAccounts ReceivableSuppliesEquipmentAccumulated Depreciation.Salaries PayableCommon StockRetained EarningsTotalsDebits$11,5006,3002,3001

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances:Accounts Debit CreditCash $ 21,900Accounts Receivable 36,500Allowance for Uncollectible Accounts $ 3,100Inventory 30,000Land 61,600Accounts Payable 32,400Notes Payable (8%, due in 3 years) 30,000Common Stock 56,000Retained Earnings 28,500Totals $150,000 $150,000The $30,000 beginning balance of inventory consists of 300 units, each costing…
The following is the summary of transactions of AA Company in 2021 and 2022: 2022 2021 Credit sales P6,000,000 P5,620,000 Collections of outstanding receivables 5,830,000 4,800,000 Accounts written off 60,000 20,000 Recovery of accounts previously written off 15,000 none Days past invoice date at December 31 2022 2021 0-30 600,000 500,000 31 90 150,000 180,000 91 180 110,000 Over 180 30,000 The company's policy to provide allowance on its account receivable at year end as follows: 0-30 days - 2%; 31-90 days - 5%; 91-180 days - 10%; and over 180 days - 20%. Statement 1; The balance of allowance for uncollectible account as of December 31, 2021 is P34,000. Statement 2:The balance of allowance for uncollectible accounts as of December 31, 2022 is P39,500.
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:Accounts Debit CreditCash $ 25,100Accounts Receivable 46,200Allowance for Uncollectible Accounts $ 4,200Inventory 20,000Land 46,000Equipment 15,000Accumulated Depreciation 1,500Accounts Payable 28,500Notes Payable (6%, due April 1, 2022) 50,000Common Stock 35,000Retained Earnings…
Macroware Corporation reported the following information in its financial statements for three successive quarters ($ in millions): Three Months Ended 6/30/2020 () 3/31/2020 (Q3) 12/31/2019 () Balance Sheets: Accounts receivable, net Income statements : Sales revenue $15, 761 $ 19,810 $ 12,900 24, 550 $ 23,330:22,120 Required: Compute the receivables turnover ratio and the average collection period for Q4 and Q3. Assume that each quarter consists of 91 days. Note: Round "Receivables turnover ratio " answers to 3 decimal places and " Average collection period" answers to 2 decimal places. Receivables turnover ratio Q4 times Receivables turnover ratio Q3 1.427 times Average collection period Q4 Average collection period Q3 days 63.79 days Balance Sheets: Accounts receivable, net Income statements: Sales revenue Macroware Corporation reported the following information in its financial statements for three successive quarters ($ in millions): Three Months Ended 3/31/2020 (03) 12/31/2019…
The following information is available for Monty's Best Corporation about the age of its receivables at December 31, its year end: Number of days outstanding Accounts Receivable Estimated percentage uncollectible (a) 0-30 $410,000 3% Total Estimated Uncollectible Accounts $ tA 31-60 $250,000 5% 61-90 $210,000 10% Over 90 $90,000 Using the above aging schedule, determine the total estimated uncollectible accounts. 15%
During the year ended December 31, 2021, Kelly's Camera Shop had sales revenue of $120,000, of which $60,000 was on credit. At the start of 2021, Accounts Receivable showed a $12,000 debit balance and the Allowance for Doubtful Accounts showed a $500 credit balance. Collections of accounts receivable during 2021 amounted to $58,000. Data during 2021 follow: a. On December 10, a customer balance of $1,000 from a prior year was determined to be uncollectible, so it was written off. b. On December 31, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year. Required: 1. Give the required journal entries for the two events in December. 2-a. Show how the amounts related to Bad Debt Expense would be reported on the income statement. 2-b. Show how the amounts related to Accounts Receivable would be reported on the balance sheet. 3. On the basis of the data available, does the 2 percent rate appear to be reasonable?
A company reports the following: Sales $1,057,770 Average accounts receivable (net) 83,950 Determine the (a) accounts receivable turnover, and (b) number of days' sales in receivables. When required, round your answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days
The year-end financial statements of Prize Inc. include the accounts receivable footnote:Total accounts and other receivables at December 31 consisted of the following: (in millions) Year 2 Year 1 Total accounts and other receivables $444.4 $476.6 Allowance for doubtful accounts (6.0) (8.4) Total accounts and other receivables, net $438.4 $468.2 The balance sheet reports total assets of $2,984.1 million at December 31, Year 2.The common-size amount for gross accounts and other receivables are: Select one: a. $444.4 million b. None of these are correct. c. 14.7% d. 14.9% e. $438.4 million
The Rivers Company reports the following data relative to accounts receivable. The terms of sale are net 30 days. (check the attached photo) Requirement: (A) Compute the accounts receivable turnover and (B) the collection period.
The solution must be good in accounting form.
jjj
Calculate the allowance ratio for the year ending 30 June 2020. Assume the number of days in the year is 365. Round the percentage change to one decimal place