Reddy Corporation reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2018. Accounts Payable Accounts Receivable Accumulated Amortization $ 910 1,020 570 1,200 Allowance for Doubtful Accounts 20 Accumulated Depreciation
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- The following information is related to December 31, 2024 balances. • Accounts receivable . Allowance for doubtful accounts (credit) . Cash realizable value $1430000 (103000) 1327000 During 2025 sales on account were $390000 and collections on account were $217000. The company wrote off $21100 in uncollectible accounts. An analysis of outstanding receivable accounts at year-end indicated that uncollectibles should be estimated at $144000. Bad debt expense for 2025 is: O $62100. O $144000. O $41000. O $19900P6.6 (LO 2, 3) (Journalize Various Accounts Receivable Transactions) The balance sheet of Starsky Company at December 31, 2024, includes the following. Notes receivable Accounts receivable Less: Allowance for doubtful accounts $ 36,000 182,100 17,300 $200,800 Transactions in 2025 include the following. 1. Accounts receivable of $138,000 were collected including accounts of $60,000 on which 2% sales discounts were allowed. 2. $5,300 was received in payment of an account which was written off the books as worthless in 2024. 3. Customer accounts of $17,500 were written off during the year. 4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $20,000. This estimate is based on an analysis of aged accounts receivable. Instructions Prepare all journal entries necessary to reflect the transactions above.Question no. 02 (b) (07)Wilson Corporation uses an income statement approach to estimate credit losses. Its Accounts Receivable of $5,000,000 at the beginning of the period had a net realizable value of $4,225,000.During year 2019 company wrote off all of its uncollectible accounts. Of these accounts 35% were subsequently collected. Prepare the entries to record write off using allowance for doubtful account and direct write off approaches. Draft Entry to record the accounts receivable that were subsequently collected. Allowance for doubtful account is treated as an expense or as a liability in general journal. Give reasons for your answer. Moreover explain the treatment of these in balance sheet. What is the characteristic common to all current assets? Many retail stores regularly sell merchandise on installment plans, calling for payments over a period of 24 or 36 months. Do such receivables qualify as current assets? Explain.
- he following information is related to December 31, 2021 balances. • Accounts receivable $3340000 • Allowance for doubtful accounts (credit) (275000) • Cash realizable value $3065000 During 2022 sales on account were $877000 and collections on account were $506000. The company wrote off $48500 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $371000. Bad debt expense for 2022 is $371000. $96000. $144500. $47500.Required Information P6-1 (Algo) Reporting Net Sales and Expenses with Discounts, Returns, and Bad Debts LO6-1, 6-2 [The following information applies to the questions displayed below.] The following data were selected from the records of Sykes Company for the year ended December 31, current year. Balances January 1, current year Accounts receivable (various customers) Allowance for doubtful accounts $123,000 7,000 In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 4/10. n/30 (assume a unit sales price of $600 in all transactions). Transactions during current year: a. Sold merchandise for cash, $240,000. b. Sold merchandise to R. Smith; invoice price, $11,000. c. Sold merchandise to K. Miller; invoice price, $32,000. d. Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit. e. Sold merchandise to B. Sears; invoice price, $29,000. f. R. Smith paid his account in full…The annual report for Fabeck Finishing Corporation contained the following information: (in millions) Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net 2021 $673 32 $641 Assume that accounts receivable write-offs amounted to $13 during 2021 and $3 during 2020, and that Fabeck Finishing did not record any recoveries. Bad Debt Expense 2020 $735 31 $704 Required: Determine the Bad Debt Expense for 2021 based on the above facts. (Enter your answer in millions.) million
- The following information is related to December 31, 2024 balances. ● Accounts receivable Allowance for doubtful accounts (credit) Cash realizable value $1570000 (111000) 1459000 During 2025 sales on account were $375000 and collections on account were $230000. The company wrote off $23000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectibles should be estimated at $144000. The change in the cash realizable value from 12/31/24 to 12/31/25 was3. The following data are presented concerning the Allowance for Bad Debts of Company A for the year ended December 31, 2023: Allowance for Bad Debts, Jan.1,2023 Write off of Accounts Receivable during 2023 P250,000 50,000 150,000 Recovery of Previously Written off Accounts Receivable Credit Sales for the year 1,200,000 Accounts Receivable, Jan. 1, 2023 Collections during 2023 Required: Determine the following for the year ended December 31,2023: 3.1. Bad Debts Expense assuming the company provides 2% Credit Sales 9,000,000 4,000,000 3.2. Ending Balance of Allowance for Bad debts using the assumption in number 3.1 3.3. Net Realizable Value of Accounts Receivable using the assumption in number 3.1 3.4. Bad Debts Expense assuming the company provides 10% of Ending Accounts Receivable 3.5. Ending Balance of Allowance for Bad debts using the assumption in number 3.4 3.6. Net Realizable Value of Accounts Receivable using the assumption in number 3.42. An analysis and aging of Concord Corp. accounts receivable at December 31, 2025, disclosed the following. Amounts estimated to be uncollectible Accounts receivable Allowance for doubtful accounts (per books) $180,710 1,799,500 Net realizable value What is the net amount expected to be collected of Concord's receivables at December 31, 2025? 125,900 1673600
- E8-16 (Static) Analyzing and Interpreting Receivables Turnover Ratio and Days to Collect [LO 8-4] FedEx Corporation reported the following rounded amounts (in millions): Accounts Receivable. Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) 2019 $9,415 (300) $9,115 $69,690 4 Required: 1. Determine the receivables turnover ratio and days to collect for 2019. 2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2018, when the turnover was 8.1? 2018 $8,880 (400) $8,450 $65,450 Receivables Turnover Ratio Days to Collect Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the receivables turnover ratio and days to collect for 2019. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 1 decimal place.) 743 times 493 daysThe following information is related to December 31, 2021 balances. • Accounts receivable $3490000 • Allowance for doubtful accounts (credit) ( 254000) • Cash realizable value $3236000 During 2022 sales on account were $ 885000 and collections on account were $ 500000. Also during 2022 the company wrote off $49000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $ 323000. The change in the cash realizable value from the balance at 12/31/21 to 12/31/22 was a $ 322000 increase. $ 267000 increase. $ 370000 increase. $ 316000 increase.A balance sheet extract of Kahwati Ltd. reported as at 30 June, 2020; Accounts Receivable $981 485 Allowance for Doubtful Debts (18 950) The company recorded the following for the year ending 30 June, 2021: Credit sales income totalling, $1 638 000 Credit sales returns totalling, $21 360 Accounts receivable collections, $1 893 000 Accounts receivable written off – uncollectable $17 695 Based on ageing of accounts receivable analysis undertaken at the end of June, 2021 the company decided that the Allowance for Doubtful Debts account should have a credit balance of $21 250 on the Balance Sheet at June 30, 2021