ACCOUNTING PRINCIPLES 222 5/16 >C<
2nd Edition
ISBN: 9781323461525
Author: Horngren
Publisher: PEARSON C
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Chapter 9, Problem 9.1FSC
> Financial Statement Case 9-1
Use Starbucks Corporation’s Fiscal 2013 Annual Report and the Note 1 data on “Allowance for Doubtful Accounts to answer the following questions. Visit http://www.pearsonhighered.com/Homgren to view a link to Starbucks Corporation’s annual report.
Requirements
- How much accounts receivables did Starbucks report as of September 29, 2013? As of September 30, 2012?
- Refer to Note 1, “Allowance for Doubtful Accounts.” How does Starbucks calculate allowance for doubtful accounts? What was the amount of the account as of September 29, 2013? As of September 30, 2012?
- Compute Starbucks’s acid-test ratio at the end of 2013. If all the current liabilities came due immediately, could Starbucks pay them?
- Compute Starbucks’s
accounts receivable turnover at the end of 2013. Use total net revenues. - Compute Starbucks’s days’ sales in receivables at the end of 2013.
- How does Starbucks compare to Green Mountain Coffee Roasters, Inc. on the basis of the acid-test ratio, accounts receivable turnover, and days’ sales in receivables?
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Interpreting the Accounts Receivable FootnoteHewlett-Packard Company reports the following in its 2015 10-K report.
October 31(in millions)
2015
2014
Accounts receivable
$13,363
$13,832
Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts.
For the fiscal years ended October 31(in millions)
2015
2014
2013
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period
$232
$332
$464
Provision for doubtful accounts
46
25
23
Deductions, net of recoveries
(89)
(125)
(155)
Balance, end of period
$189
$232
$332
(a) What is the gross amount of accounts receivables for Hewlett-Packard in fiscal 2015 and 2014?
($ millions)
2015
2014
Gross accounts receivable
Answer?
Answer?
(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2015 and 2014? (Round your answers to two decimal places.)
($ millions)
2015
2014…
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
Chapter 9 Solutions
ACCOUNTING PRINCIPLES 222 5/16 >C<
Ch. 9 - 1. With good internal controls, the person who...Ch. 9 - Prob. 2QCCh. 9 - Which of the following is a limitation of the...Ch. 9 - 3. The entry to record a write-off of an...Ch. 9 - Brickman Company uses the allowance method to...Ch. 9 - Brickman’s ending balance of accounts Receivable...Ch. 9 - At December 31 year-end, Crain Company has an...Ch. 9 - Using the data in the preceding question, what...Ch. 9 - At year-end, Schultz Company has cash of $11,600,...Ch. 9 - Using the data in the preceding question, assume...
Ch. 9 - What is the difference between accounts receivable...Ch. 9 - List some common examples of other receivables,...Ch. 9 - Prob. 3RQCh. 9 - When dealing with receivables, give an example of...Ch. 9 - What type of account must the sum of all...Ch. 9 - Prob. 6RQCh. 9 - What occurs when a business factors its...Ch. 9 - What occurs when a business pledges its...Ch. 9 - What is the expense account associated with the...Ch. 9 - When is bad debts expense recorded when using the...Ch. 9 - What are some limitations of using the direct...Ch. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - When using the allowance method, what account is...Ch. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - How do the percent-of-receivables and...Ch. 9 - What is the difference between the...Ch. 9 - In accounting for bad debts, how do the income...Ch. 9 - What is the formula to compute interest on a note...Ch. 9 - Prob. 21RQCh. 9 - Prob. 22RQCh. 9 - Prob. 23RQCh. 9 - Prob. 24RQCh. 9 - Prob. S9.1SECh. 9 - Prob. S9.2SECh. 9 - Applying the direct write-off method to account...Ch. 9 - Collecting a receivable previously written...Ch. 9 - Applying die allowance method to account for...Ch. 9 - Applying the allowance method (percent-of-sales)...Ch. 9 - Applying the allowance method...Ch. 9 - Applying the allowance method...Ch. 9 - Computing interest amounts on notes receivable A...Ch. 9 - Accounting for a note receivable On June 6,...Ch. 9 - Accruing interest revenue and recording collection...Ch. 9 - Recording a dishonored note receivable Midway...Ch. 9 - Using the acid-test ratio, accounts receivable...Ch. 9 - Defining common receivables terms Learning...Ch. 9 - E9-15 Identifying and correcting internal control...Ch. 9 - Journalizing transactions using the direct...Ch. 9 - Prob. E9.17ECh. 9 - Prob. E9.18ECh. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Prob. E9.20ECh. 9 - Prob. E9.21ECh. 9 - Journalizing note receivable transactions...Ch. 9 - Journalizing note receivable transactions The...Ch. 9 - Journalizing note receivable transactions Like New...Ch. 9 - Evaluating ratio data Chippewa Carpets reported...Ch. 9 - Prob. E9.26ECh. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Prob. P9.30APGACh. 9 - Accounting for notes receivable and accruing...Ch. 9 - Accounting for notes receivable, dishonored notes,...Ch. 9 - Prob. P9.33APGACh. 9 - Prob. P9.34BPGBCh. 9 - Prob. P9.35BPGBCh. 9 - Prob. P9.36BPGBCh. 9 - Prob. P9.37BPGBCh. 9 - Prob. P9.38BPGBCh. 9 - Prob. P9.39BPGBCh. 9 - Prob. P9.40BPGBCh. 9 - Prob. P9.41CPCh. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Decision Case 9-1 Weddings on Demand sells on...Ch. 9 - Decision Case 9-2 Pauline’s Pottery has always...Ch. 9 - Prob. 9.1FCCh. 9 - > Financial Statement Case 9-1 Use Starbucks...
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