Which company reports the greater allowance for doubtful accounts (amount and percentage of gross receivable) at the end of2020? Assume PepsiCo's allowance account relates to trade receivables only. (Enter amounts in millions. Round percentage values to2 decimal places, e.g. 52.76%.)Allowance fordoubtful amountPercent of grossreceivablesSACoca-Cola Company526million$%PepsiCo, Inc.Company reportsthe greaterallowancefor doubtfulaccounts201millionCoca-Cola2.92%Coca-Cola

**1. Allowance for Doubtful Accounts Amount:** The allowance for doubtful accounts represents an…

Answered: Which company reports the greater…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 32E

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1. Easy Company sells directly to retail customers. On January 1, 2020, the balance of the accounts receivable was P2,070,() while the allowance for doubtful accounts was a ceredit of P78,(K). The following data are gathered. E E I T Writeoll's Recoverles Credit Sales 11,100,000 12,250,000 14,650,000 15,0KK),C) 2017 22,000 260,000 295,(0N) 300,00N) 2018 37,000 2019 36,000 2020 310,000 42,(000 Doubiful accounts are provided for as a percentage of credit sales. The entity caleuluted the percentage annually by using the experience of the three years prior to the current year. Required: a. What is the percentage of credit sales to be used in computing doubtful uccounts еxpense for 20207 b. Whnt amount should be reported as doubiful expense for 2020? c. What amount should be reported as allowance for doubtful accounts on December 31, 2020? CS Scanned with CamScanner
Here is information related to Mingenback Company for 2022. Total credit sales $2,500,000Accounts receivable at December 31 875,000Uncollectibles written off 33,000 Instructions a. What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for uncollectibles?b. Assume that Mingenback Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Mingenback record if Allowance for Doubtful Accounts has a credit balance of $3,000? b. Bad debt expense $49,500 c. Assume the same facts as in (b), except that there is a $3,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Mingenback record?d. What is the weakness of the direct write-off method of recording bad debt expense? Journalize entries to record transactions related to bad debts.
PROBLEM: On January 1, 2022, Trevor Co. sells goods with a list price of P1,000,000 on account under credit. terms of 10%, 15%, 3/10 2/15 1/20 n/30. 1. How much should be debited to Accounts receivable on January 1, 2022, under the net method? 2. Assuming the customer settled its account on January 11, 2022, what amount should be recognized as sales discount under the gross method? 3. Assuming the customer settled its account on January 16, 2022, what amount should be recognized as sales discount forfeited under the allowance method? 4. Assuming the customer settled its account on January 21, 2022, what amount should be recognized as sales discount forfeited under the net method? 5. Assuming the customer settled its account on January 31, 2022, what amount should be recognized as sales discount under the allowance method?
On April 4, 2021, LASTNATOBEYBE, Inc. sold goods on account to acustomer for P1,000,000, terms were 2/10, n/30. The company factoredthe accounts receivable on April 4 to a financial institution on April 14,2021. The factor charged 8% and withheld 15% of the receivablesfactored.How much is the proceeds from factoring?
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FDN Company reported the following on December 31, 2021, before adjustments: Accounts Receivable P11,000,000 Allowance for Doubtful Accounts P300,000 Sales P50,000,000 The entity estimated that 5% of accounts receivable may prove uncollectible. How much should be reported as doubtful accounts expense for the year ended December 31, 2021?
At December 31, 2024, Sunland Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts 1. During 2025, the company had the following transactions related to receivables. 2. 3. 4. 5. Sales on account Sales returns and allowances $573,000 Collections of accounts receivable 33,000 Write-offs of accounts receivable deemed uncollectible Recovery of bad debts previously written off as uncollectible $2,450,000 56,000 2,150,000 46,000 20,000
At December 31, 2021, Skysong, Inc. 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. 5. (a) (b) (c) (d) Sales on account Sales returns and allowances $620,000 42,000 Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible Recovery of accounts previously written off as uncollectible Accounts receivable turnover Compute the accounts receivable turnover and average collection period, assuming the expected uncollectibles information provided in (c). (Round answers to 1 decimal place, e.g. 25.2. Use 365 days for calculation.) Average collection period $2,810,000 63,000 2,510,000 44,000 15,000 times days
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
(MODIFIED) Seed Enterprise gathered the following information from its accounting records for the year ended December 31, 2020, prior to adjustments: Net credit sales for the year Php 680,000 Accounts receivable at December 31, 2020 92,000 Allowance for uncollectible accounts at December 31, 2020 1,850 Debit Seed uses the allowance method of accounting for uncollectible accounts and estimates uncollectible account expense at 2% of net credit sales. REQUIRED: A. Prepare the adjusting entry to record uncollectible account expense on December 31, 2020. В. Determine the balance in allowance for uncollectible accounts after the adjusting entry is prepared. С. Show how the receivables would be reported on the December 31, 2020 balance sheet for Seed Enterprise.
Here is information related to Ayayai Company for 2022. Total credit sales $2,571,000 Accounts receivable at December 31 830,000 Uncollectibles written off 32,300 (a) What amount of bad debt expense will Ayayai Company report if it uses the direct write-off method of accounting for uncollectibles?$__________ (b) Assume that Ayayai Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Ayayai record if Allowance for Doubtful Accounts has a credit balance of $4,300?$__________ (c) Assume that Ayayai Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Ayayai record if Allowance for Doubtful Accounts has a debit balance of $4,300?$__________
Tantrum Company provided the following information in relation to accounts receivable at year-end: Days outstanding estimated amount %uncollectible www M 1% 1,200,000 900,000 0-60 61-120 2% 1,000,000 3,100,000\ During the current year, the entity wrote off P70,000 in accounts receivable and recovered P20,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was Over 120 6% P60,000. Under the aging method, what amount of uncollectible accounts expense should be reported for the current year?

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