We have the following information for Sunny Ltd.:• from the marketing expenses account, £6, 250 corresponds to the following accounting period.• from the administrative expenses account, an additional £7, 050 need to be considered.• managers from Sunny Ltd. have received the information that one of its major customers will gobankrupt and will not be able to pay. This customer represents 60% of the total trade receivables fromSunny Ltd. The trade receivables balance equals £84, 000.After considering all the previous economic transactions, which of the following statements is true?O a. Sunny Ltd. decreases assets by £50, 400 and increases liabilities in the same quantity.O b. Sunny Ltd. decreases assets by £44, 150 and increases liabilities by £7, 050.O c. Sunny Ltd. decreases expenses by £51,200 and increases assets in £50, 400.O d. None of the answers is true.

Total assets is always equal to the sum of total liabilities and stockholders' equity of the…

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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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Flying Tigers, Inc., has net sales of $762,000 and accounts receivables of $154,000. What is the firm's accounts receivables turnover? (Give your answer up to two decimal places)
Crane Corp.currently has accounts receivable of $1,093,000 on net sales of $7,334,000. What are its accounts receivable turnover ratio and days' sales outstanding (DSO)? (Round accounts receivable turnover ratio answer to 2 decimal places, e.g. 12.25 and days' sales outstanding answer to 1 decimal place, e.g. 12.2. Use 365 days for calculation.)
The Moraine Company has net income of $167,850. There are currently 32.65 days' sales in receivables. Total assets are $856,000, total receivables are $148,100, and the debt-equity ratio is .65. a. What is the company's profit margin? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the company's total asset turnover? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the company's ROE? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Profit margin b. Total asset turnover c. ROE % times %
At January 1, 2024, Tarjee Inc. reported the following information on its statement of financial position: Accounts receivable $530,000 40,000 Allowance for expected credit losses ,40,000 During 2024, the company had the following summary transactions for receivables: Sales on account, $1,930,000; cost of goods sold, $1,061,500; return rate, 5% Selling price of goods returned, $76,000; cost of goods returned to inventory, $41,800 Collections of accounts receivable, $1,700,000 Write-offs of accounts receivable deemed uncollectible, $53,000 Collection of accounts previously written off as uncollectible, $12,000 After considering all of the above transactions, total estimated uncollectible accounts, $32,000 Prepare the journal entries to record each of the above summary transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…
At the beginning of the current period, Azim Enterprises Ltd. had balances in Accounts Receivable of $2.1 million and in Allowance for Doubtful Accounts of $144,000 (credit). During the period, Azim had credit sales of $4.3 million with cost of goods sold of $3.1 million and collections of $5.2 million. It wrote off $185,000 of accounts receivable. However, a $28,000 account written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $85,000 at the end of the period. Instructions Prepare the entries to record sales and collections during the period. Prepare the entry to record the write off of the $185,000 of accounts deemed uncollectible during the period. Prepare the entry(ies) to record the collection of the $28,000 account written off as part of the uncollectible accounts in part (b). Prepare the entry to record bad debts expense for the period. Prepare T accounts for Accounts Receivable and Allowance for…
The question that says “if the accounts payable turnover is 5.7, what is the days’ payable outstanding? ( round your answer to the nearest day.)
Fizzy Sodas and Hayes Companies are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Req 1 Complete this question by entering your answers in the tabs below. Req 2A Required: 1. Calculate the receivables turnover ratios and days to collect for Fizzy Sodas and Hayes Companies for 2018 and 2017. 2-a. Which of the companies was quicker to convert its receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash in 2017? Req 2B Receivables Turnover Ratio Days to collect 2018 2018 $ 40,630 4,410 620 3,790 Fizzy Sodas Fizzy Sodas 2017 $ 45,120 4,710 610 4,100 Hayes Companies…
Bolton sold a customer service contract with a price of $37,000 to Sammy's Wholesale Company. Bolton offered terms of 1/10, n/30 and uses the gross method. Required: Hide Prepare the journal entry assuming the payment is made after 10 days (after the discount period). Account and Explanation Debit Credit Record collection of accounts receivable
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Please use three of my questions for this problem.
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