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...

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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.
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Knight Roundtable Co. had annual credit sales of $1,080,000 and an average collection period of 32 days in 2018. Assume a 360-day year. What were the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 49,000 units per year, an ordering cost of $8 per order, and carrying costs of $1.60 per unit.
Assume that the percentage of sales method was used instead by the company and that on December 31st, 2010 5% of 2010 ‘s credit sales are estimated to be uncollectible. Assume Sales for 2010 were 520,000 (60% relates to cash sales)Determine the amount to be charged to the uncollectible expense account.
TMRW Co. has annual credit sales of $1,080,000 and an average collection period of 32 days in 2010. Assume a 360-day year. What is the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. XYZ company has annual credit sales of $1,440,000 and an average collection period of 45 days in 2005. Assume a 360 day year. What is the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales time the average collection period. Haru company has an average collection period of 35 days. The accounts receivable balance is $105,000. What is the value of its credit sales?
The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 2014 to be as follows: Sales Purchases August $25,000 $17,000 September 15,000 19,500 October 25,000 29,000 November 30,000 20,000 December 26,000 24,000 65% of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days after they are incurred. The firm had a cash balance of $5,000 as of September 30th, and its minimum required cash balance is $4,000. It had no beginning loan balance. Prepare a cash budget for October, November and December.
At the beginning of 2009, Pental Company had the following balances: A/R = $122,000 Allowance for Uncollectible Accounts = $7,900 During 2009, their credit sales were $1,173,000 and collections on A/R were $1,150,000. The following additional transactions occurred during the year: Feb 17, wrote off XXX Account, $3.600 May 28, wrote off YYY Account, $2,400 Dec 15, wrote off ZZZ Account, $900 Dec 31, recorded bad debts expense assuming that Penman's policy is to record bad debts expense at 0.8% of credit sales (Hint: The allowance account is increased by 0.8% of credit sales regardless of write-offs.) Compute the ending balance in A/R and the allowance for uncollectible accounts. Show how Pental's Dec 31, 2009 balance sheet reports the two accounts.
Dapper Hat Makers Company sells merchandise on credit. During the fiscal year ended July 31, the company had net sales of $2,300,000. At the end of the year, it had Accounts Receivable of $600,000 and a debit balance in Allowance for Uncollectible Accounts of $3,400. In the past, approximately 1.4 percent of net sales have proved to be uncollectible. Also, an aging analysis of accounts receiv- able reveals that $30,000 of the receivables appears to be uncollectible. Prepare journal entries to record uncollectible accounts expense using (a) the percentage of net sales method and (b) the accounts receivable aging method. (c) what is the resulting balance of allowance for uncollecible accounts under each method? how woukd your answer under each method change if allowance for uncollectible accounts had a credit balance of $3,400 instead of a debit balance? why do the methods result in different balances?
During 2014, SABA Company had net sales of $11,400,000. Most of the sales were on credit. At the end of 2014, the balance of Accounts Receivable was $1,400,000 and Allowance for Uncollectible Accounts had a debit balance of $48,000. SABA Company’s management uses two methods of estimating uncollectible accounts expense: the percentage of net sales method and the accounts receivable aging method. The percentage of uncollectible sales is 1.5 percent of net sales, and based on an aging of accounts receivable, the end-of-year uncollectible accounts total $140,000. Show your computations.
I need help with this hw problem. Thank you!
shobha
. My New Business uses percentage of sales to determine the value for allowance for doubtful accounts. If sales were $275,000, and the estimate is 2% of sales, what is the journal entry to record this. What if there was a $750 debit balance in the account? A $750 credit balance in the account?

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