Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 9, Problem 15E
To determine
Determine the amount of net income would have been, if Company MPS estimated that 1% of sales would be uncollectible, instead of using direct write off method.
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During its first year of operations, Mack’s Plumbing Supply Co. had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off method, and reported net income of $487,500. Determine what the net income would have been if the allowance method had been used and the company estimated that 1% of sales would be uncollectible.
During its first year of operations, Sampson’s Cosmetics International had sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using the direct write-off method, and re-ported net income of $487,500.
Determine what the net income would have been if the allowance method had been used and the company estimated that 1% of sales would be uncollectible.
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Chapter 9 Solutions
Financial Accounting
Ch. 9 - What are the three classifications of receivables?Ch. 9 - Dans Hardware is a small hardware store in the...Ch. 9 - What kind of an account (asset, liability, etc.)...Ch. 9 - After the accounts are adjusted and closed at the...Ch. 9 - A firm has consistently adjusted its allowance...Ch. 9 - Which of the two methods of estimating...Ch. 9 - Neptune Company issued a note receivable to...Ch. 9 - If a note provides for payment of principal of...Ch. 9 - The maker of a 240,000, 6%, 90-day note receivable...Ch. 9 - The note receivable dishonored in Discussion...
Ch. 9 - Prob. 1PEACh. 9 - Journalize the following transactions, using the...Ch. 9 - Prob. 2PEACh. 9 - Journalize the following transactions, using the...Ch. 9 - At the end of the current year, Accounts...Ch. 9 - At the end of the current year, Accounts...Ch. 9 - At the end of the current year, Accounts...Ch. 9 - At the end of the current year, Accounts...Ch. 9 - Guzman Company received a 60-day, 5% note for...Ch. 9 - Prefix Supply Company received a 120-day, 8% note...Ch. 9 - Financial statement data for years ending December...Ch. 9 - Prob. 6PEBCh. 9 - Prob. 1ECh. 9 - MGM Resorts International owns and operates hotels...Ch. 9 - Journalize the following transactions in the...Ch. 9 - Prob. 4ECh. 9 - Creative Solutions Company, a computer consulting...Ch. 9 - At the end of the current year, the accounts...Ch. 9 - Toot Auto Supply distributes new and used...Ch. 9 - The accounts receivable clerk for Waddell...Ch. 9 - Waddell Industries has a past history of...Ch. 9 - Using data in Exercise 9-9, assume that the...Ch. 9 - Selbys Bike Co. is a wholesaler of motorcycle...Ch. 9 - Using the data in Exercise 9-11, assume that the...Ch. 9 - The following selected transactions were taken...Ch. 9 - The following selected transactions were taken...Ch. 9 - Prob. 15ECh. 9 - Using the data in Exercise 9-15, assume that...Ch. 9 - Casebolt Company wrote off the following accounts...Ch. 9 - Seaforth International wrote off the following...Ch. 9 - Determine the due date and the amount of interest...Ch. 9 - Master Designs Decorators issued a 180-day, 6%...Ch. 9 - Prob. 21ECh. 9 - Prob. 22ECh. 9 - Journalize the following transactions of Trapper...Ch. 9 - Journalize the following transactions in the...Ch. 9 - Prob. 25ECh. 9 - Polo Ralph Lauren Corporation designs, markets,...Ch. 9 - Prob. 27ECh. 9 - Prob. 28ECh. 9 - Prob. 29ECh. 9 - The following transactions were completed by The...Ch. 9 - Trophy Fish Company supplies flies and fishing...Ch. 9 - Call Systems Company, a telephone service and...Ch. 9 - Flush Mate Co. wholesales bathroom fixtures....Ch. 9 - The following data relate to notes receivable and...Ch. 9 - The following were selected from among the...Ch. 9 - The following transactions were completed by The...Ch. 9 - Wig Creations Company supplies wigs and hair care...Ch. 9 - Prob. 3PBCh. 9 - Gen-X Ads Co. produces advertising videos. During...Ch. 9 - The following data relate to notes receivable and...Ch. 9 - The following were selected from among the...Ch. 9 - Prob. 1CPCh. 9 - For several years, Xtreme Co.s sales have been on...Ch. 9 - Prob. 3CPCh. 9 - Prob. 4CPCh. 9 - Prob. 5CP
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- Futing its first of operations, Mack's plumbing supply co. Haf sales of $610,000, wrote off $9,800 of accounts as uncollectible using the direct write-off method, and reported net income of $67,100. Determine what the net income would have been if the allowance method had been used, and the company estimated 1 3/4% of sales would be uncollectible .arrow_forwardDuring its first year of operations, Mack's Plumbing Supply Co. had sales of $6,740,000, wrote off $48,600 of accounts as uncollectible using the direct write-off method, and reported net income of $712,500. Assume that during the second year of operations Mack's Plumbing Supply Co. had sales of $7,450,000, wrote off $52,000 of accounts as uncollectible using the direct write-off method, and reported net income of $800,000. a. Determine what net income would have been in the second year if the allowance method (using 1% of sales) had been used in both the first and second years.$fill in the blank 1 b. Determine what the balance of the allowance for doubtful accounts would have been at the end of the second year if the allowance method had been used in both the first and second years.$fill in the blank 2arrow_forwardDuring the first year of operations, Ken's Data Ventures, a Dedham-based construction company, had sales of $4,350,0003; it wrote $35,700 of accounts as uncollectible using direct write-off method, and reported net income of $521,000. Required: If the company were to use the allowance method with uncollectible estimate of 19% of sales, determine what the net income would have been under the allowance method. Show Your Work:arrow_forward
- During the first year of operations, Jones’ Family Ventures, a Worcester-based retailer, had sales of $3,500,000, wrote off $28,500 of accounts as uncollectible using direct write-off method, and reported net income of $500,000. Required: If the company were to use the allowance method with uncollectible estimate of 1% of sales, determine what the net income would have been under the allowance method Show Your Work:.arrow_forwardHardevarrow_forwardsolve this plsarrow_forward
- During the first yea of operation family ventures, a boston based construction company, had sales of 4,350,000, wrote off 35,700 of accounts as uncollectible using direct write off method and reported net income of 521,000. If the company were to use the allowance method with uncollectible estimate of 1% of saes; Determine what the net income would have been under the allowance methodarrow_forwardDexter, Incorporated, had a cost of goods sold of $63,382. At the end of the year, the accounts payable balance was $12,889. How long, on average, did it take the company to pay off its suppliers during the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16arrow_forwardFor the past year, Hawkeye, Inc., had a cost of goods sold of $63,882. At the end of the year, the accounts payable balance was $12,789. How long on average did it take the company to pay off its suppliers during the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forward
- Dexter, Incorporated, had a cost of goods sold of $43,921. At the end of the year, the accounts payable balance was $7,943. How long on average did it take the company to pay off its suppliers during the year? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Days' sales in payables 66.00 daysarrow_forwardDexter, Incorporated, had a cost of goods sold of $44,121. At the end of the year, the accounts payable balance was $8,143. How long on average did it take the company to pay off its suppliers during the year? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forwardTripod Company makes all sales on account. During the current year, Tripod has an average accounts receivable balance of $60,000, an average inventory balance of $96,000, cost of goods sold of $345,000, and net income of $117.000. If Tripod's gross margin percentage is 42.5%, what was its average collection period? Round to one decimal point. O 18.3 days O 24.3 days O 30.4 days O 36.5 days O None of the abovearrow_forward
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