Hi expart Provide correct answer False Value Hardware began in 2011 with a credit balance of$32,000 in the allowance for sales returns account. Sales andcash collections from customers during the year were $650,000and $610,000, respectively. False Value estimates that 6% ofall sales will be returned. In 2011, customers returnedmerchandise for a credit of $28,000 to their accounts.False Value's 2011 income statement would report net sales of:a. $611,000b. $607,000c. $646,000d. $622,000

Net sales = Sales - Provision for sales returns during the yearNet sales = $650,000 - ($650,000 *…

Answered: False Value Hardware began in 2011 with…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

See similar textbooks

Similar questions

Flimflam Corp had sales to customers of $475,000 during 2015. The company has consistently experienced a 35% gross profit percentage and estimates that 5% of all sales will be returned. During 2015, customers returned merchandise for credit of $18,000 to their accounts. The balance in the allowance for sales returns account at the beginning of 2015 was $24,000. What is the balance in the allowance for sales returns account at the end of 2015?
Watin Inc's 2015 income statement reported net sales of $5,000,000. Watin's average accounts receivable during 2015 amounted to $450,000. Using 360 days to a year, Watin's: A. Accounts receivable turnover rate is approximately 13.8 times. B. Accounts receivable turnover rate is approximately 1.25 times. C. Average number of days to collect an account receivable is 32 days. D. Accounts receivable turnover rate is approximately 2 times.
Paul & Griffon manufactures and markets many products you use every day. In 2016, sales for the company were $93,000 (all amounts in millions). The annual report did not report the amount of credit sales, so we will assume that all sales were on credit. The average gross profit percentage was 51.2 percent. Account balances for the year follow: ts Beginning Ending Accounts receivable ЕВook $5,300 $5,700 (net) Inventory 6,080 6,100 Hint Required: Print 1. Compute the following turnover ratios. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. ferences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the following turnover ratios. (Do not round intermediate calculations. Round your final answers to 1 decimal place.) Receivables Turnover Ratio Inventory Turnover Ratio 00
Wal-Get Company sells apparel (clothing) to retail customers. Historical results show that about 10% of daily sales will be returned for a full refund. The ratio of cost of goods sold to sales is 70% (on average). On December 15, 2023, Wal-Get sold $5,000,000 of apparel products. The accounting system has appropriately recorded the sales and cash received and the decrease in inventory and increase in cost of sales for December 15. Calculate the estimated inventory return asset relative to December 15 sales.
During 2018, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returnsof $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company estimates that 8% of all saleswill be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns, assumingthat all sales are made on credit and all accounts receivable are outstanding.
During the year ended December 31, 2015, Kelly’s Camera Shop had sales revenue of $170,000,of which $85,000 was on credit. At the start of 2015, Accounts Receivable showed a $10,000 debitbalance and the Allowance for Doubtful Accounts showed a $600 credit balance. Collections ofaccounts receivable during 2015 amounted to $68,000.Data during 2015 follow:a. On December 10, a customer balance of $1,500 from a prior year was determined to be uncollectible, so it was written off.b. On December 31, a decision was made to continue the accounting policy of basing estimatedbad debt losses on 2 percent of credit sales for the year.Required:1. Give the required journal entries for the two events in December.2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would bereported on the balance sheet and income statement for 2015.3. On the basis of the data available, does the 2 percent rate appear to be reasonable? Explain.
Conrad Company reported the following balances at June 30, 2015: $16,200 Sales Revenue Sales Returns and 600 Allowances Sales Discounts 300 Cost of Goods Sold 7,500 Net sales for the month is O a) $15,600. O b) $15,300. O c) $7,800 d) $16,200.
X Co. had $2 million in credit sales during 2021. Historically, 2% of its sales are returned by customers. During 2021, customers returned $25,000 worth of merchandise. The adjusting journal entry for 2021 will include: Debit to Refund Liability of $12,500. Debit to Sales Returns for $40,000 Debit to Sales Returns of $15,000. Credit to Sales Returns for $20,000
shobha
The Happy Auto Shop has the following annual information: gross sales,$700,000; net sales, $696,000; and gross profit, $448,000. What are theshop’s returns and allowances and cost of goods sold?
The Happy Auto Shop has the following annual information: Gross Sales, $700,000; Net Sales, $696,000; Gross Profit, $448,000. What are the shop’s returns and allowances and cost of goods sold? Give an overall detailed response.
Glee Consolidated had sales of $15,000,000 for 2014. On December 31, 2013 the balance in Accounts Receivable was $700,000 and on December 31, 2014 the balance was $1,300,000. On December 31, 2013 the balance in Inventory was $400,000 and on December 31, 2014 the balance was $600,000. The Cost of Goods Sold during 2014 was $11,000,000. -Compute the Accounts Receivable turnover ratio. -Compute the Inventory turnover ratio.

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

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

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

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

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS