None The following balances were extracted from the subsidiary joumals of General Spaza Shop as at 28 February 20.2.Cash receipts journalVAT inputSales columnCash payments journalPurchases columnVAT outputPurchases journalTrade payables columnSales journalTrade receivables column iPurchases returns journalTrade payables columnSales returns journalTrade receivables column)R1207.50153 300,00221 900,001680,00152 950,00291 812.5017 307 5012 880,00On 1 February 20.2, the VAT input account had an opening balance of R42 000 and the VAT output account had an opening balance of R63000.The applicable VAT rate is 15%Calculate the closing balance of the VAT output account as at 28 February 20.2.Instructions:1. Use a full stop to indicate any decimals (eg 1000.01)2 Round off to the second decimal after the full stop (eg: 50.56)

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Answered: The following balances were extracted…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 2PB: Transactions related to revenue and cash receipts completed by Sterling Engineering Services during...

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Refer to RE6-3. Assume Long records accounts receivable and sales using the net price method. Prepare the related journal entries for Long.
Required: 1. Calculate the exchange gain or loss to be reported in 20X7. (Do not round intermediate calculations.) 2. Calculate the accounts receivable on the 31 December 20X7 statement of financial position. 3. Calculate the sales revenue to be recorded from the transactions listed above. Thumb up if you have the correct answer! Thanks
The accounts receivable subsidiary ledger of Olarita Corporation shows the following information: Customer 12/31 Account balance Invoice Date Amount One, Inc. P140,720 12/06 P56,000 11/29 84,720 Two Co. 83,680 09/02 48,000 08/20 35,680 Three Corp. 122,400 12/08 80,000 10/25 42,400 Four Co. 180,560 11/17 92,560 10/09 88,000 Five Co. 126,400 12/12 76,800 12/02 49,600 Six, Inc. 69,600 09/12 69,600 Total P723,360 P723,360 The estimated bad debt rates below are based on the Corporation’s receivable collection experience. Age of accounts Rate 0 – 30 days 1% 31 – 60 days 1.5% 61 – 90 days 3% 91 – 120 days 10% Over 120 days 50% The Allowance for Doubtful Accounts had a credit balance of P14,000 on December 31, 2020, before adjustment. 1. The adjusting journal entry to adjust the allowance for doubtful accounts as of December 31, 2020 will include a debit to doubtful accounts expense of
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1Accounts receivable, end of year $ 725,000 $ 650,000 $600,000Sales on account 5,637,500 4,687,500a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days’ sales in receivables. Round to the nearest dollar and one decimal place.b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?
When examining the accounts of Palma Company, you ascertain that balance relating to bothreceivables and payables are included in a single controlling account (called receivables),which has a P23,050 debit balance. An analysis of the details of this account revealed thefollowing: Items Debit Credit Accounts Receivable - customers P 40,000 Accounts receivable - officers (Current collection expected) 2,500 Debit balances - creditors 450 Expense advances to salespersons 1,000 Share capital subscriptions receivable 4,600 Accounts payable for merchandise P 19,250 Unpaid salaries 3,300 Credit balance in customer accounts 2,000 Cash received in advance from customers for goods not yet shipped 450 Expected bad debts, cumulative 500 Required:1. How should each item be reported on Palma Company’s statement of financial position?
The Bramble Company received $820 on account frana cto The transaction was eneously recorded as a detto Cashf $280 and a cradit to Accounts Payable of 5280 The correcting entry is O Accounts Payable Cav Accounts Receivable Accounts Payable Cash Acourts Receivable Accounts Payable Cah Accounts Payable Accounts Receivable 820 140 200 540 290 200 1300 820 240
When examining the accounts of Palma Company, you ascertain that balance relating to bothreceivables and payables are included in a single controlling account (called receivables),which has a P23,050 debit balance. An analysis of the details of this account revealed thefollowing: Items Debit Credit Accounts Receivable - customers P 40,000 Accounts receivable - officers (Current collection expected) 2,500 Debit balances - creditors 450 Expense advances to salespersons 1,000 Share capital subscriptions receivable 4,600 Accounts payable for merchandise P 19,250 Unpaid salaries 3,300 Credit balance in customer accounts 2,000 Cash received in advance from customers for goods not yet shipped 450 Expected bad debts, cumulative 500 Required:1. Give the journal entry to eliminate the above account and to set up the appropriateaccounts to replace it.
The following data are taken from the financial statements of Sigmon Inc. Accounts receivable, end of year Sales on account 20Y2 $182,600 $197,000 1,043,900 1,001,560 20Y3 1. Accounts receivable turnover For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. 20Y2 2. Number of days' sales in receivables 20Y1 20Y3 $211,800 Days Days
The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) B I U T₂ T² Ix 2022 $550,000 4,300,000 2022 7.9 times lil 2021 What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period. € $540,000 4,000,000 2021 46.2 days 48.7 days 7.5 times W 144 144 들 3 99 = á T ¶₁
Classifying Items Related to Receivables and Payables in a Balance Sheet When examining the accounts of WholeFoods Company, we ascertain that balances relating to both receivables and payables are included in a single controlling account (called receivables), which has an $7,200 debit balance. An analysis of the details of this account reveals the following. Items Debit Credit Accounts receivable—customers $16,000 Accounts receivable—officers (current collection expected) 1,000 Travel advances to sales staff 400 Accounts payable for merchandise $7,700 Unpaid salaries 1,320 Credit balances in customer accounts (accounts receivable) 800 Cash received in advance from customers for goods not yet shipped 180 Allowance for doubtful accounts, adjusted 200 Indicate how each of the items should be reported on WholeFoods Company’s balance sheet. Some accounts below may have a zero balance. Do not use negative signs in your answers. Cash and…
4. B Corp.’s accounts receivable subsidiary ledger shows the following information: Customer Account BalanceDecember 31, 2022 Sales Invoices Date Amount Pray Inc. P 35,180 12/6/2022 P 14,000 11/29/2022 21,180 Patience Co. 20,920 9/27/2022 12,000 8/20/2022 8,920 Love Corp. 30,600 12/8/2022 20,000 10/25/2022 10,600 Happy Co. 45,140 11/17/2022 23,140 10/9/2022 22,000 Kindness Corp. 31,600 12/12/2022 19,200 12/2/2022 12,400 Gentleness Inc. 17,400 9/12/2022 17,400 The estimated bad debts rates below are based on BB’s receivable collection experience. Age of Accounts Rate 0 -30 days 1.00% 31- 60 days 1.50% 61-90 days 3.00% 91 - 120 days 10.00% over 120 days 50.00% The allowance for bad debts had beginning balance of P6,500. Statement 1: The net realizable value of the accounts receivable at December 31, 2022 is P165,170. Statement 2:…
b. Comment on each of the ratios calculated in part (a). ABOVE IS THE QUESTION THAT I NEED ANSWER, BELOW IS THE QUESTION (A) ANSWER THAT MENTIONED IN QUESTION (B) a) Calculate the following ratios for Company A and Company B. State clearly the formulae used for each ratio: ANSWER iv) Receivables Collection Period (days) Receivables Collection Period (days) = ( Receivables / Net sales ) x 365 days Company A: = ( 6000 / 160000 ) x 365 = 13.68 Days Company B: = ( 20000 / 240000 ) x 365 = 30.41 Days v) Payables Payment Period (days) Company A: Payables payment period= * 365 Accounts payable= RM 10,000 Cost of sales= RM120,000 Payable payment period= *365 = 30.42 days Company B: Accounts payable= RM 20,000 Cost of sales= RM 180,000 Payable payment period= *365 = *365 = 40.55 days vi)Current Ratio Company A Current ratio= Current assets= RM 40,000…

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