Receivables: Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable , note receivable, and other receivables. Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense. Following financial figures are reported in the financial statements of A products Incorporation for the year ended July 25, 2015 (figures in million dollars). To determine: The amount of gross trade accounts receivable at the end of the year.

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Answer 1

Question

Chapter 7, Problem 7.7BYP

(3)(a)

To determine

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Following financial figures are reported in the financial statements of A products Incorporation for the year ended July 25, 2015 (figures in million dollars).

To determine: The amount of gross trade accounts receivable at the end of the year.

(b)

To determine

The amount of bad debts expenses for the year.

(c)

To determine

The amount of actual bad debts write-offs made during the year.

(d)

To determine

The amount of cash collected from customers during the year.

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KIARA LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Property, plant and equipment (cost) Accumulated depreciation Long-term investments Inventory Accounts receivable Company tax paid in advance Bank EQUITY AND LIABILITIES 2024 2023 R R 2 490 000 1 620 000 (630 000) 660 000 1 050 000 1 230 000 30 000 (480 000) 450 000 1 290 000 900 000 0 750 000 660 000 5 580 000 4 440 000 Ordinary share capital 2 700 000 2 000 000 Retained income 1 500 000 1 158 000 Long-term loan from Kip Bank (15%) 900 000 1 000 000 Accounts payable 480 000 228 000 Company tax payable 0 54 000 5 580 000 4 440 000 ADDITIONAL INFORMATION All purchases and sales are on credit. Interim dividends paid during the year amounted to R150 750. Credit terms of 3/10 net 60 days are granted by creditors.

Accounting Question

REQUIRED Study the information given below and answer the following questions. Where discount factors are required use only the four decimals present value tables that appear after the formula sheet or in the module guide. Ignore taxes. 5.1 Calculate the Accounting Rate of Return on average investment of the second alternative (expressed to two decimal places). 5.2 Determine which of the two investment opportunities the company should choose by calculating the Net Present Value of each alternative. Your answer must include the calculation of the present values and NPV. 5.3 Calculate the Internal Rate of Return of the first alterative (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION The management of Bentall Incorporated is considering two investment opportunities: (5 marks) (9 marks) (6 marks) The first alternative involves the purchase of a new machine for R900 000 which…

Answer 2

Question

Chapter 7, Problem 7.7BYP

(3)(a)

To determine

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Following financial figures are reported in the financial statements of A products Incorporation for the year ended July 25, 2015 (figures in million dollars).

To determine: The amount of gross trade accounts receivable at the end of the year.

(b)

To determine

The amount of bad debts expenses for the year.

(c)

To determine

The amount of actual bad debts write-offs made during the year.

(d)

To determine

The amount of cash collected from customers during the year.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 7, Problem 7.7BYP

(3)(a)

To determine

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Following financial figures are reported in the financial statements of A products Incorporation for the year ended July 25, 2015 (figures in million dollars).

To determine: The amount of gross trade accounts receivable at the end of the year.

(b)

To determine

The amount of bad debts expenses for the year.

(c)

To determine

The amount of actual bad debts write-offs made during the year.

(d)

To determine

The amount of cash collected from customers during the year.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 7, Problem 7.7BYP

(3)(a)

To determine

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Following financial figures are reported in the financial statements of A products Incorporation for the year ended July 25, 2015 (figures in million dollars).

To determine: The amount of gross trade accounts receivable at the end of the year.

(b)

To determine

The amount of bad debts expenses for the year.

(c)

To determine

The amount of actual bad debts write-offs made during the year.

(d)

To determine

The amount of cash collected from customers during the year.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 7.7BYP

(3)(a)

To determine

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Following financial figures are reported in the financial statements of A products Incorporation for the year ended July 25, 2015 (figures in million dollars).

To determine: The amount of gross trade accounts receivable at the end of the year.

(b)

To determine

The amount of bad debts expenses for the year.

(c)

To determine

The amount of actual bad debts write-offs made during the year.

(d)

To determine

The amount of cash collected from customers during the year.

Answer 6

Chapter 7, Problem 7.7BYP

(3)(a)

To determine

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Following financial figures are reported in the financial statements of A products Incorporation for the year ended July 25, 2015 (figures in million dollars).

To determine: The amount of gross trade accounts receivable at the end of the year.

Answer 7

Chapter 7, Problem 7.7BYP

(3)(a)

To determine

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Following financial figures are reported in the financial statements of A products Incorporation for the year ended July 25, 2015 (figures in million dollars).

To determine: The amount of gross trade accounts receivable at the end of the year.

Answer 8

(b)

To determine

The amount of bad debts expenses for the year.

Answer 9

(b)

To determine

The amount of bad debts expenses for the year.

Answer 10

(c)

To determine

The amount of actual bad debts write-offs made during the year.

Answer 11

(c)

To determine

The amount of actual bad debts write-offs made during the year.

Answer 12

(d)

To determine

The amount of cash collected from customers during the year.

Answer 13

(d)

To determine

The amount of cash collected from customers during the year.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 7 - Prob. 7.1Q Ch. 7 - Prob. 7.2Q Ch. 7 - Prob. 7.3Q Ch. 7 - Prob. 7.4Q Ch. 7 - Prob. 7.5Q Ch. 7 - Prob. 7.6Q Ch. 7 - Distinguish between the gross and net methods of...Ch. 7 - Briefly explain the accounting treatment for sales...Ch. 7 - Explain the typical way companies account for...Ch. 7 - Briefly explain the difference between the income...

Solution Summary: The author explains that the amount of gross trade accounts receivable at the end of the year is 5,646 and the allowance for doubtful accounts was 134.

The amount of bad debts expenses for the year.

The amount of actual bad debts write-offs made during the year.

The amount of cash collected from customers during the year.

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Chapter 7 Solutions