F. The records of Stedman Corp. included the following accounts, all of which are normal balances: Cash sales $1,200,000 900,000 180,000 200,000 3,000 5,000 Credit sales Balance in accounts receivable, 12/31/20 Balance in accounts receivable, 12/31/21 Balance in allowance for doubtful accounts, 12/31/20 Accounts written off as uncollectible during 2021 Stedman estimates bad debts as 2% of receivables at year end to be uncollectible. Write diuating ont

F. The records of Stedman Corp. included the following accounts, all of which are normal balances: Cash sales $1,200,000 900,000 180,000 200,000 3,000 5,000 Credit sales Balance in accounts receivable, 12/31/20 Balance in accounts receivable, 12/31/21 Balance in allowance for doubtful accounts, 12/31/20 Accounts written off as uncollectible during 2021 Stedman estimates bad debts as 2% of receivables at year end to be uncollectible. Write diuating ont

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 44E: Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note:...

See similar textbooks

Similar questions

Required:1. Assume that the aging of accounts receivable method was used by the company and that$7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. Youare now required to:a. Determine the amount to be charged to uncollectible expense (show yourworkings for the computation of this figure).b. Prepare the balance sheet extract to show the net realizable value of the AccountsReceivable as at December 31
42. On January 1, 20X4, Alejandro Company reported accounts receivable of P2,000,000 and allowance for doubtful accounts of P100,000. The entity provided the following data: Credit Sales Write-Offs Recoveries 20X1 20X2 20X3 20X4 P11,100,000 12,250,000 14,650,000 15,000,000 P260,000 295,000 300,000 200,000 P22,000 37,000 36,000 50,000 The collections from customers during 20X4 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually using the experience of the three (3) years before the current year. What amount should be reported as doubtful accounts expense for 20X4? A. P39,000 B. P31,000 C. P28,000 D. P35,000
The following data were taken from the records of Zhubair Company for the year ended December 31, 2021: Šales on account Notes received to settle accounts Provision for doubtful accounts P7,200,000 800,000 180,000 50,000 7,800,000 6,400,000 520,000 30,000 4,900,000 Accounts determined to be worthless Purchases on account Payments to creditors Discounts allowed by creditors Merchandise returned by customer Čollections received to settle accounts Notes given to creditors to settle accounts 500,000 Merchandise returned to suppliers Payments on notes payable Discounts taken by customers Colletions received in settlement of 140,000 200,000 80,000 notes 360,000 23. What is the outstanding balance of the notes receivable account at December 31, 2021? 24. What is the net realizable value of the accounts receivable?
The following information is available for Market, Incorporated and Supply, Incorporated at December 31 Supply, Incorporated $ 75,400 2,256 867,100 Accounts Accounts receivable Allowance for doubtful accounts Sales revenue Required: a. What is the accounts receivable turnover for each of the companies? b. What is the average days to collect the receivables? c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? Complete this question by entering your answers in the tabs below. Required A Required B Required C Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? Note: Round your percentage answers to nearest whole number. Company Market, Incorporated $ 56,200 2,248 606,960 Market Supply Estimated Percentage of Uncollectible Accounts % %
36. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000Allowance for doubtful accounts, 1/1/22 28,600Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000Cash received from customers during the year 2,400,000Accounts written off during the year 17,600Cash refunds given to cash customers for sales returns and allowances 15,000Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and subsequent…
The following information is available for Market, Incorporated and Supply, Incorporated at December 31: Supply, Incorporated $ 75,400 2,256 867,100 Accounts Accounts receivable Allowance for doubtful accounts Sales revenue Required: a. What is the accounts receivable turnover for each of the companies? b. What is the average days to collect the receivables? c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? Complete this question by entering your answers in the tabs below. Required A Required B. Required C What is the average days to collect the receivables? Note: Use 365 days in a year. Do not round intermediate calculations. Round your answers to the nearest whole number. Average Collection Company Market, Incorporated $ 56,200 2,248 606,960 Market Supply Period days days
Emilio Co. had the following information relating to its accounts receivable: Accounts receivable, Jan. 1 Allowance for doubtful accounts, Jan. 1 Credit sales Sales discounts Collection from customers (excluding recoveries) Accounts written off Accounts previously written off but were eventually collected P2,000,000 40,000 10,000,000 70,000 8,700,000 120,000 60,000 Compute for the doubtful accounts expense for the year and the ending balance of the allowance for doubtful accounts given the following independent assumptions: Page 1 of 5 1. Uncollectible accounts are estimated at 1.5% of net credit sales. 2. Uncollectible accounts are estimated at 7.5% of outstanding accounts receivable.
3. Below are the subledger accounts receivable for Emilio Company: Anthony.. Malaya Mekhi. Omari. Kaytana. Total. $ 7,200 9,700 18,200 37,000 900 $73,000 There is no balance in the Allowance for Doubtful accounts. Instructions a. Prepare the appropriate journal entries given the following transactions: i. the controller would like you the write off the following accounts as uncollectible: 7,200 18,200 Anthony. Mekhi.. Кaytana. 900 ii. received payment from Malaya for $2,600 iii. collected $7,200 from the Anthony account iv. write off the balance in the Malaya account v. collected $18,000 from Mekhi, the remainder will not be collectible vi. the controller estimates that 2% of the total accounts receivable balance will be uncollectible b. What is the net realizable value of the accounts receivable after all adjustments? Date Account Titles and Explanation PR Debit Credit
55. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000Allowance for doubtful accounts, 1/1/22 28,600Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000Cash received from customers during the year 2,400,000Accounts written off during the year 17,600Cash refunds given to cash customers for sales returns and allowances 15,000Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and subsequent…
At what amount will accounts receivable for Anderson Company be reported on the balance sheet if the gross receivable balance is $52,000 and the allowance for doubtful accounts is estimated at 4% of gross receivables? Select one: A. $28,200 B. $49,920 C. $52,960 D. $47,000
Mountain Co.'s Accounts Receivable has a balance of P 240,000 at the beginning of the period. The following occurred during the period. a. Sales on account of P 300,000 b. Collection on account P 230,000 c. The collectability of P 30,000 accounts receivable is found to be doubtful. d. P 15,000 accounts receivable are deemed worthless. e. P 10,000 accounts receivable previously written off are subsequently collected What is the amount of Bad Debts Expense that shall be reported in the statement of financial performance?
Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.