Pots-R-Us deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following information was extracted from the accounting records at 30 June 2022: § Credit Sales Sales returns and allowances Cash collected Debts to be written off 552,000 37,900 319,120 4,022 Allowance for Doubtful Debts 1 July 2021 2,645 Cr i How much would be reported in the balance sheet fo gross accounts receivable (before any allowance for doubtful debts or bad debt write-off) at 30 June 2022? O a. $522 000 O b. $514 000 O c. $511 455 O d. $232 880 O e. $194 980

Pots-R-Us deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following information was extracted from the accounting records at 30 June 2022: § Credit Sales Sales returns and allowances Cash collected Debts to be written off 552,000 37,900 319,120 4,022 Allowance for Doubtful Debts 1 July 2021 2,645 Cr i How much would be reported in the balance sheet fo gross accounts receivable (before any allowance for doubtful debts or bad debt write-off) at 30 June 2022? O a. $522 000 O b. $514 000 O c. $511 455 O d. $232 880 O e. $194 980

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 7RE: McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made...

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You have been provided with the following information for the reporting period ended 31 December 2019: € Trade receivables balance: as at 31 December 2018 36,600 as at 31 December 2019 21,840 Discounts allowed 3,600 Discounts received 2,120 Sales returns 8,700 Bad debts 12,500 Cheques received as payment for credit sales Cash received as payment for credit sales Bad debts provision: 345,200 51,600 as at 31 December 2018 4,400 as at 31 December 2019 6,900 All cheques and cash received had been lodged in full to the bank account by the reporting date. Requirement What is the revenue figure to be presented in the statement of profit or loss for the reporting period ended 31 December 2019?
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Current Attempt in Progress At December 31, 2021, Suisse Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts During 2022, the company had the following transactions related to receivables. 1. 2. 3. 4. (d) Sales on account Sales returns and allowances Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible V: $600,000 37,000 eTextbook and Media List of Accounts Save for Later $2,500,000 Indicate how accounts receivable and the allowance for doubtful accounts will be reported on the December 31, 2022, balance sheet. 50,000 2,200,000 41,000 SUISSE IMPORTS Balance Sheet Assets +A $ Attempts: 0 of 3 used Submit Answer
Goods are sold on 30.09.2022 to the company "PD" instead of the amount of €10,000, with promissory notes to our order due on 28.02.2023 to which interest of €500 is added (the company separates on 30.09.2022 the interest into: accrued and unearned accrued interest on notes receivable). Make the journal entry
Ini ESPAÑOL INGLÉS FRANCÉS In 2021, XYZ made the mistake of not amortizing the Note Payable Discount account. Indicate the effect on Net Income reported in the Statement of Income and Expenses for the period ending December 31, 2021. to. Overstated b. Understated С. Although it affects the ledger accounts, the net effect is zero. d. It has no effect on the ledger accounts. Enviar comentarios MacBook Air
McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.
Receivables Issues Magrath Company has an operating cycle of less than one year and provides credit terms for all of its customers. On April 3, 2019, the company factored, without recourse, some of its accounts receivable. Magrath does not normally factor its receivables. On August 1, 2019, Magrath sold special order merchandise and received an interest-bearing note due April 30, 2020. Magrath uses the allowance method to account for uncollectible accounts. During 2019, some accounts were written off as uncollectible, and other accounts previously written off as uncollectible were collected. Required: 1. Explain how Magrath should account for and report the accounts receivable factored on April 3, 2019. Why is this accounting treatment appropriate? 2. Explain how Magrath should report the effects of the interest-bearing note on its income statement for the year ended December 31, 2019, and its December 31, 2019, balance sheet. 3. Explain how Magrath should account for the collection of the accounts previously written off as uncollectible. 4. What are the two basic approaches to estimating uncollectible accounts under the allowance method? What is the rationale for each approach?
Al Hajar Co. provides you the following account balances for the year ended on 31 December 2019. Sales Revenue OMR 100,000 Cr. Accounts Receivable OMR 25,000 Dr. Allowance for Doubtful accounts OMR 1000 Cr. Scenario 1 Bad debts are estimated based on the aging schedule given below Aging class Receivable Balance (OMR) Estimate % of uncollectible 0–30 days 15,000 10 31–60 days 5,000 15 61–90 days 3,500 20 Over 90 days 1,500 25 Actual bad debt - OMR 1,100 and amount recovered - OMR 800. Scenario 2 Estimated amount of bad debts - 12% of receivables, Actual bad debt - OMR 1,500 and amount recovered later on - OMR 900. Scenario 3 Estimated amount of bad debts - 3.5% of Sales, Actual bad debt - OMR 1,300 and amount recovered - OMR 1000. Required: For each scenario given above; a)Estimate the uncollectible amounts. b)Pass adjusting entry to record the estimated uncollectible. c)Pass all the journal entries for actual write off and recovery…
Goods are sold on 30.09.2022 to the company "PD" instead of the amount of €10,000, with promissory notes to our order due on 28.02.2023 to which interest of €500 is added (the company separates on 30.09.2022 the interest into: accrued and unearned accrued interest on notes receivable). which are the journal entries?
Mostack has the following trade receivables position: 31 December 2020 31 December 2021 £ £Trade receivables 111,500 154,100Allowance for doubtful debts 2% 3%For the year ended 31 December 2021 one of the customers who owed Moston Trading £4,100, which is included in the trade receivables balance, has been declared bankrupt and no monies will be received from that customer.The figure that would appear in the income statement for the year ended 31 December 2021 in respect of bad and doubtful debts is:a) £4,100b) £4,500c) £2,230d) £6,370
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InvisiGuard Ltd sells security doors. Majority of its sales are on credit except small amount of cash sales each year. The accounting records at 30 June 2019 reveal the following. Ignore GST. Credit sales (for the year of 2019) Cash sales (for the year of 2019) Credit sales returns and allowances (for the year of 2019) Accounts receivable (balance at 30 June 2019) Allowance for doubtful debts (credit balance at 30 June 2019) $2,100,000 20,000 80,000 593,000 2,800 The company's yearly bad debts expense had been estimated at 2.5% of net credit sales revenue in the past. The management of InvisiGuard Ltd has decided to compare the current method with an ageing of accounts receivable method. The following analysis was obtained with respect to the accounts receivable. Balance % of estimated uncollectable $351,200 92,000 78,000 40,800 Accounts not yet due Accounts overdue 1 10 - 30 days 31 - 60 days 61 - 120 days 121 days and over 10 30 31,000 593,000 60 Total Required: a) Prepare the…