u are a junior accountant of Titanic Bike Parts Limited (TBL) which purchases and resells bike parts to other bike manufacturers. TBL arted operations on January 1, 2020. You have been tasked in analyzing the company's accounts receivable. ou have been given other three worksheets, Sales Data, Inventory Data, and Aging Group, in the downloaded Excel file: . Sales Data - this worksheet includes all the sales data up to December 31, 2021 pulled from the sales system that TBL utilizes. Each inventory item sold has a unique sales ID and item ID assigned to it, even if multiple inventory items are sold within a bulk sale (i.e., on same date and to same customer). This means that each row in this worksheet represents a sale of a . unique inventory item. All sales are made on account to customers with a term of 2/10, n/30. If a customer have paid in full for a sale, the payment date is provided in this worksheet. The payment date is left blank if the payment is to be collected after December 31, 2021, as this worksheet is prepared on December 31, 2021. Inventory Data - this worksheet provides the bike part description of an item ID used in the Sales Data worksheet. Aging Group - this worksheet includes aging groups and estimated bad debt percentages TBL uses for estimating bad debt expenses. Required: 1. Calculate the balance of Accounts Receivable at December 31, 2020 and December 31, 2021 (round to the nearest whole number). Tips: If a sale occurs before or in 2020 but the payment is collected after 2020, the amount of the sale will appear in Accounts Receivable at 2020-12-31. Similarly, if a sale occurs before or in 2021 but the payment is collected after 2021, the amount of the sale will appear in Accounts Receivable at 2021-12-31. So, the IF function will be used. Please check this link for more information on the IF function. A/R balance at December 31, 2020 A/R balance at December 31, 2021
u are a junior accountant of Titanic Bike Parts Limited (TBL) which purchases and resells bike parts to other bike manufacturers. TBL arted operations on January 1, 2020. You have been tasked in analyzing the company's accounts receivable. ou have been given other three worksheets, Sales Data, Inventory Data, and Aging Group, in the downloaded Excel file: . Sales Data - this worksheet includes all the sales data up to December 31, 2021 pulled from the sales system that TBL utilizes. Each inventory item sold has a unique sales ID and item ID assigned to it, even if multiple inventory items are sold within a bulk sale (i.e., on same date and to same customer). This means that each row in this worksheet represents a sale of a . unique inventory item. All sales are made on account to customers with a term of 2/10, n/30. If a customer have paid in full for a sale, the payment date is provided in this worksheet. The payment date is left blank if the payment is to be collected after December 31, 2021, as this worksheet is prepared on December 31, 2021. Inventory Data - this worksheet provides the bike part description of an item ID used in the Sales Data worksheet. Aging Group - this worksheet includes aging groups and estimated bad debt percentages TBL uses for estimating bad debt expenses. Required: 1. Calculate the balance of Accounts Receivable at December 31, 2020 and December 31, 2021 (round to the nearest whole number). Tips: If a sale occurs before or in 2020 but the payment is collected after 2020, the amount of the sale will appear in Accounts Receivable at 2020-12-31. Similarly, if a sale occurs before or in 2021 but the payment is collected after 2021, the amount of the sale will appear in Accounts Receivable at 2021-12-31. So, the IF function will be used. Please check this link for more information on the IF function. A/R balance at December 31, 2020 A/R balance at December 31, 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:u are a junior accountant of Titanic Bike Parts Limited (TBL) which purchases and resells bike parts to other bike manufacturers. TBL
arted operations on January 1, 2020. You have been tasked in analyzing the company's accounts receivable.
ou have been given other three worksheets, Sales Data, Inventory Data, and Aging Group, in the downloaded Excel file:
. Sales Data - this worksheet includes all the sales data up to December 31, 2021 pulled from the sales system that TBL utilizes.
Each inventory item sold has a unique sales ID and item ID assigned to it, even if multiple inventory items are sold within a bulk
sale (i.e., on same date and to same customer). This means that each row in this worksheet represents a sale of a
.
unique inventory item. All sales are made on account to customers with a term of 2/10, n/30. If a customer have paid in full for a
sale, the payment date is provided in this worksheet. The payment date is left blank if the payment is to be collected after
December 31, 2021, as this worksheet is prepared on December 31, 2021.
Inventory Data - this worksheet provides the bike part description of an item ID used in the Sales Data worksheet.
Aging Group - this worksheet includes aging groups and estimated bad debt percentages TBL uses for estimating bad debt
expenses.
Required:
1. Calculate the balance of Accounts Receivable at December 31, 2020 and December 31, 2021 (round to the nearest whole number).
Tips: If a sale occurs before or in 2020 but the payment is collected after 2020, the amount of the sale will appear in Accounts
Receivable at 2020-12-31. Similarly, if a sale occurs before or in 2021 but the payment is collected after 2021, the amount of the sale
will appear in Accounts Receivable at 2021-12-31. So, the IF function will be used. Please check this link for more information on the IF
function.
A/R balance at December 31, 2020
A/R balance at December 31, 2021
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