EBK HEALTHCARE FINANCE: AN INTRODUCTIO
6th Edition
ISBN: 9781567938111
Author: Gapenski
Publisher: VST
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Chapter 4, Problem 4.8P
To determine
Introduction: Income statement is a statement which presents the revenues and expenses of the company in a structured way to reflect the net income/loss earned the company. Primarily, there are two methods of presenting the income statement i.e. condensed and detailed.
To prepare: The income statement of U hospitalfor the year ended December 31, 2015
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The following information is taken from the 2015 annual report to shareholders of Herme-Finnet (HF) Company.
For Fiscal
2015
For Fiscal
2014
$ 57 million
$36 million
Provision for doubtful accounts
Accounts receivable, net
Accounts receivable, gross
Beginning Balance
At Fiscal Year-
end 2015
13,473 million
13,673 million
Using a T-account for the allowance for doubtful accounts, identify the changes in the account during fiscal year 2015.
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Ending Balance
At Fiscal Year-end 2014
13,942 million
14, 185 million
Allowance for Doubtful Accounts
Okay, I have everything else in the journal entry except for the last one. I'm attaching a picture of what I've got so you don't have to worry about explaining all of that.
Here's the original (complete) problem:
Weldon Corporation’s fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2018:
Mar.
17
Accounts receivable of $1,700 were written off as uncollectible. The company uses the allowance method.
30
Loaned an officer of the company $20,000 and received a note requiring principal and interest at 7% to be paid on March 30, 2019.
May
30
Discounted the $20,000 note at a local bank. The bank’s discount rate is 8%. The note was discounted without recourse and the sale criteria are met.
June
30
Sold merchandise to the Blankenship Company for $12,000. Terms of the sale are 2/10, n/30. Weldon uses the gross method to account for cash discounts.
July
8
The Blankenship Company paid its account in…
The following information is taken from the 2015 annual report to shareholders of Herme-Finnet (HF) Company.
For Fiscal
2015
For Fiscal
2014
$60 million
$ 39 million
Provision for doubtful accounts
Accounts receivable, net
Accounts receivable, gross
Beginning Balance
At Fiscal Year- At Fiscal Year-end 2014
end 2015
Ending Balance
13,503 million
13,706 million
Using a T-account for the allowance for doubtful accounts, identify the changes in the account during fiscal year 2015.
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
13,972 million
14,218 million
Allowance for Doubtful Accounts
Chapter 4 Solutions
EBK HEALTHCARE FINANCE: AN INTRODUCTIO
Ch. 4 - Prob. 1.1STQCh. 4 - Prob. 1.2STQCh. 4 - Prob. 1.3STQCh. 4 - Prob. 1.4STQCh. 4 - Prob. 2.1STQCh. 4 - Prob. 2.2STQCh. 4 - Prob. 2.3STQCh. 4 - Prob. 2.4STQCh. 4 - Prob. 2.5STQCh. 4 - Prob. 3.1STQ
Ch. 4 - Prob. 3.2STQCh. 4 - Prob. 3.3STQCh. 4 - Prob. 3.4STQCh. 4 - Prob. 3.5STQCh. 4 - Prob. 4.1STQCh. 4 - Prob. 4.2STQCh. 4 - Prob. 4.3STQCh. 4 - Prob. 4.4STQCh. 4 - Prob. 5.1STQCh. 4 - Prob. 5.2STQCh. 4 - Prob. 5.3STQCh. 4 - Prob. 5.4STQCh. 4 - Prob. 6.1STQCh. 4 - Prob. 6.2STQCh. 4 - Prob. 6.3STQCh. 4 - Prob. 7.1STQCh. 4 - Prob. 7.2STQCh. 4 - Prob. 7.3STQCh. 4 - Prob. 4.1QCh. 4 - Prob. 4.2QCh. 4 - Prob. 4.3QCh. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - Prob. 4.6QCh. 4 - Prob. 4.7QCh. 4 - Prob. 4.8QCh. 4 - Prob. 4.9QCh. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.8PCh. 4 - Prob. 4.9P
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- The data below is for Alta Corporation for 2016.Accounts receivable--December 31, 2016 $2,144,000Customer accounts written off as uncollectible during 2016 32,000Allowance for doubtful accounts--January 1, 2016 34,800Estimated uncollectible accounts based on an aging analysis 42,400 If the aging approach is used to estimate bad debts, determine the bad debt expense for 2016.arrow_forwardPlease let me know what the formulas/rules I need to know to solve this problem.arrow_forwardDuring the second year of operations. Shark Company found itself in financial difficulties. The entity decided to use the accounts receivable as a means of obtaining cash to continue operations. On July 1, 2016, the entity sold P1,500,000 of accounts receivable for cash proceeds od P1,390,000. No bad debt allowance was associated with these accounts. On December 15, 2016, the entity assigned the remainder of its accounts receivable, P5,000,000 as of that date, as collateral on a P2,500,000, 12% anual interest rate loan from Finance Company. The entity received P2,500,000 less a 2% finance charge. None of the assigned accounts had been collected by the end of the year. It is estimated that 10 % of accounts receivable would be uncollectīble. The entity revealed the following data on December 31, 2016: Accounts receivable, excluding factored and assigned accounts 1,000,000 Accounts receivableassigned 5,000,000 Accounts receivable-factored 1,500,000 Allowance for bad debts before…arrow_forward
- Alpesarrow_forwardCredit department of the Starlight Inc. estimates uncollectible accounts while analyzing various receivables. By the end of year 2017, credit manager collects following information relating to receivables and uncollectible accounts.Gross accounts receivable at the end of year as presented in balance sheet of company $520000. On the basis of past experience, company estimates that 2.5 percent of gross accounts receivable are uncollectible. During 2017, an amount of $1500 receivable from specific customer is expected to be written off as uncollectible. However, of these accounts written off, total receivables of $500 were subsequently collected. Required: a. Prepare all necessary journal entries and calculate amount of accounts receivable in the balance sheet of Starlight Inc. before and after write-off of uncollectible accounts as at December 31, 2017. b. Further, Company comes to know that a customer whose receivables were due on December 1, 2017, could not pay due amount of $50000.…arrow_forwardPrepare the required journal entries to record each of the above transactions.arrow_forward
- The following information is taken from the 2015 annual report to shareholders of Herme-Finnet (HF) Company. For Fiscal 2015 For Fiscal 2014 Provision for doubtful accounts $ 55 million $ 34 million At Fiscal Year- At Fiscal Year-end 2014 end 2015 Accounts receivable, net 13,453 million 13,651 million Accounts receivable, gross 13,922 million 14, 163 million Using a T-account for the allowance for doubtful accounts, identify the changes in the account during fiscal year 2015. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Beginning Balance Ending Balance Allowance for Doubtful Accountsarrow_forwardDuring the second year of operations. Shark Company found itself in financial difficulties. The entity decided to use the accounts receivable as a means of obtaining cash to continue operations. On July 1, 2016, the entity sold P 1,500,000 of accounts receivable for cash proceeds od P1,390,000. No bad debt allowance was associated with these accounts. On December 15, 2016, the entity assigned the remainder of its accounts receivable, P5,000,000 as of that date, as collateral on a P2,500,000, 12% annual interest rate loan from Finance Company. The entity received P2,500,000 less a 2% finance charge. None of the assigned accounts had been collected by the end of the year. It is estimated that 10 % of accounts receivable would be uncollectible. The entity revealed the following data on December 31, 2016: Accounts receivable, excluding factored and assigned accounts 1,000,000 Accounts receivable assigned…arrow_forwardI need the answer on number 15 only. Thanks 1.The 2017 year-end balances of Accounts Receivable and Allowance for Doubtful Accounts are $1,000,000 and $100,000, respectively. Complete the net realizable value (net accounts receivable) presentation at 12/31/2017. Do not use decimals. 2.Prepare the journal entry to record 2018 total sales: $3,000,000, of which $2,200,000 are on account. Do not use decimals. [Note: enter cash sales in the first line.] 3.Compute the net realizable value (net accounts receivable) presentation after the journal entry to record 2018 sales. Do not use decimals. 4.Prepare the journal entry to record $2,700,000 of accounts receivable collected in 2018. Do not use decimals. 5.Compute the net realizable value (net accounts receivable) presentation after the two journal entries to record 2018 sales and 2018 collections. Do not use decimals. 6.Prepare the journal entry to record $25,000 of write-offs in 2018. Do not use decimals. 7.Compute the net realizable value…arrow_forward
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