Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 21, Problem 21.7P
a.
To determine
To prepare:
b.
To determine
Cumulative effect of the accounting changes made in 2018.
c.
To determine
To prepare: Multiple step income statement for JEC.
d.
To determine
To prepare: The footnote for the accounting changes in 2018.
e.
To determine
To prepare: Retained earnings column of statement of
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The following information is taken from the 2015 annual report to shareholders of
Herme-Finnet (HF) Company.
For Fiscal
2015
For Fiscal
2014
Provision for doubtful accounts
$ 55 million $ 34 million
At Fiscal Year-
At Fiscal Year-end 2014
end 2015
Accounts receivable, net
13,453 million
13,651 million
Accounts receivable, gross
13,922 million
14, 163 million
Using a T-account for the allowance for doubtful accounts, identify the changes in the
account during fiscal year 2015.
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Beginning Balance
Ending Balance
Allowance for Doubtful Accounts
After analyzing its accounts receivable at year-end, a company arrives at the following age categories along with the percentages estimated as uncollectible.
Age of Accounts
0-30 days past due
31-60 days past due
61-120 days past due
121-180 days past due
Over 180 days past due
[Select] ✔
Accounts Receivable Estimated Uncollectible %
Transaction
Report bad debt expense
$134,000
46,000
29,000
[Select]
13,000
9,000
$231,000
Assets
The year-end balance of the allowance for uncollectible accounts before any adjustment is $2,300. Use the information above to answer the following questions.
a. What amount of bad debt expense will the company report in its income statement for the current year?
2.0%
3.0%
b. Use the financial statement effects template to show the impact of reporting this year's bad debt expense. If there is no net change in an item, select 'no net change.
Balance Sheet
Liabilities
=
6.0%
12.0%
20.0%
[Select]
+
Equity
[Select]
c. What is the net accounts receivable balance…
The following information is provided in the 2021 annual report to shareholders of paris-perfume.com:
Required:
Compute the missing amount in the paris-perfume.com financial statement Information. (Do not round your Intermediate
calculations.)
Accounts receivable
Inventory
Other assets
Total assets
Total liabilities
Total stockholders' equity
Net sales
Cost of goods sold
Net income
Return on assets
Receivables turnover
Inventory turnover
Asset turnover
Return on equity
Profit margin on sales
December 31, 2021
million
72 million
million
million
million
million
For the year ended Dec. 31, 2021
million
million
42 million
10 %
$
$
8.0
12.0
2.7
20 %
5 %
December 31, 2020
75 million
32 million
$
S
S
S
S
$
172 million
279 million
75 million
204 million
Chapter 21 Solutions
Intermediate Accounting (2nd Edition)
Ch. 21 - Are accounting changes permitted in financial...Ch. 21 - How do firms report accounting changes under the...Ch. 21 - Prob. 21.3QCh. 21 - How do firms account for changes in accounting...Ch. 21 - Prob. 21.5QCh. 21 - Prob. 21.6QCh. 21 - Prob. 21.7QCh. 21 - Prob. 21.8QCh. 21 - Do accounting errors that self-correct within two...Ch. 21 - Does a firm need to correct an error that...
Ch. 21 - Prob. 21.1MCCh. 21 - Prob. 21.2MCCh. 21 - Prob. 21.3MCCh. 21 - Prob. 21.4MCCh. 21 - Prob. 21.5MCCh. 21 - Prob. 21.1BECh. 21 - Prob. 21.2BECh. 21 - Prob. 21.3BECh. 21 - Prob. 21.4BECh. 21 - Change in Accounting Principle, Long-Term...Ch. 21 - Prob. 21.6BECh. 21 - Prob. 21.7BECh. 21 - Prob. 21.8BECh. 21 - Prob. 21.9BECh. 21 - Prob. 21.10BECh. 21 - Prob. 21.11BECh. 21 - Prob. 21.12BECh. 21 - Prob. 21.13BECh. 21 - Prob. 21.14BECh. 21 - Change in Accounting Principle, Inventory. Massi...Ch. 21 - Change in Accounting Principle, Long-Term...Ch. 21 - Prob. 21.3ECh. 21 - Change in Accounting Principle, Inventory. Winthur...Ch. 21 - Prob. 21.5ECh. 21 - Prob. 21.6ECh. 21 - Error Analysis and Correction. Feinstein and...Ch. 21 - Prob. 21.8ECh. 21 - Prob. 21.9ECh. 21 - Prob. 21.10ECh. 21 - Change in Accounting Principle, Inventory. Second...Ch. 21 - Prob. 21.2PCh. 21 - Prob. 21.3PCh. 21 - Prob. 21.4PCh. 21 - Prob. 21.5PCh. 21 - Change in Estimate, Inventory, Bad Debt Expense....Ch. 21 - Prob. 21.7PCh. 21 - Cases Judgment Case Judgment Case: Materiality and...Ch. 21 - Prob. 1FSCCh. 21 - Surfing the Standards: Change in Accounting...Ch. 21 - Prob. 1BCC
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