The assessment of amount of the allowance for doubtful accounts receivables. Given information: Data for Y2 Sales for the Y2 are $370, 00,000. Total receivables for Y2 are $67,000,000. In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%. In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%. In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%. In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%. In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%. Data for Y1 Sales for the Y2 are $420, 00,000. Total receivables for Y1 are $48,000,000. In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%. In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%. In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%. In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%. In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.

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Required Information [The following Information applies to the questions displayed below.] Sparrow Company uses the retail Inventory method to estimate ending Inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost 97,000 Retail $ 187,000 363,000 587,000 9,700 7,700 11,700 16,700 12,700 3,700 5,546 8,700 547,000 10,700 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,700. 2. Estimate Sparrow's ending Inventory and cost of goods sold for the year using the retail Inventory method and the conventional application. Note: Round Cost-to-retall percentage to 2 decimal places and final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Conventional application Estimated ending inventory at retail $ 705,200 x Estimated ending inventory at cost S 417,878 x Estimated…

Answer 1

Question

Chapter 9, Problem 2JC

To determine

The assessment of amount of the allowance for doubtful accounts receivables.

Given information:

Data for Y2

Sales for the Y2 are $370, 00,000.

Total receivables for Y2 are $67,000,000.

In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%.

In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%.

In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%.

In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%.

Data for Y1

Sales for the Y2 are $420, 00,000.

Total receivables for Y1 are $48,000,000.

In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%.

In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%.

In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%.

In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.

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Required Information [The following Information applies to the questions displayed below.] Sparrow Company uses the retail Inventory method to estimate ending Inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost 97,000 Retail $ 187,000 363,000 587,000 9,700 7,700 11,700 16,700 12,700 3,700 5,546 8,700 547,000 10,700 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,700. 2. Estimate Sparrow's ending Inventory and cost of goods sold for the year using the retail Inventory method and the conventional application. Note: Round Cost-to-retall percentage to 2 decimal places and final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Conventional application Estimated ending inventory at retail $ 705,200 x Estimated ending inventory at cost S 417,878 x Estimated…

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