Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 4.27P
Problem 4.27
LO 6. 7
Analyze several accounts using Campbell Soup Company annual report data Set up a horizontal model in the following format:
Beginning balance
Net sales
Cost of products sold
Marketing, selling, and administrative expanses
Purchases on account
Collection of accounts receivable
Payments to suppliers and other
Ending balance
Required:
- Enter the beginning (July 23, 2013) and ending (August 3, 2014) account balances for Accounts Receivable, Inventories, and Payable to Suppliers and Others. Find these amounts on the balance sheet for Campbell Soup Company in the appendix.
- From the income statement for Campbell Soup Company for the year ended August 3, 2014, in the appendix, record the following transactions in the model:
- Net Sales, assuming that all sales were made on account.
- Cost of Products Sold, assuming that all costs were transferred from inventories.
- Marketing, Selling, and Administrative Expenses, assuming all of these expenses were accrued in the Payable to Suppliers and Others liability category as they were incurred.
(Hint: Campbell's General, Selling, and Administrative Expenses are contained m two separate captions. Note that Payable to Suppliers and Others is another term for Accounts Payable.)
- Purchases of inventories on account.
- Collections of accounts receivable.
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Question Content Area
Based on the following data, what is the accounts receivable turnover?
Sales on account during year
$700,000
Cost of merchandise sold during year
270,000
Accounts receivable, beginning of year
45,000
Accounts receivable, end of year
35,000
Merchandise inventory, beginning of year
90,000
Merchandise inventory, end of year
110,000
a.20.0
b.15.5
c.2.6
d.17.5
Problem 1
The following summarizes the transactions recorded in the Accounts receivable – trade account of Pratt Corporation:
Accounts Receivable – Trade
Balance forwarded, net of
P9,000 credit balance
Charge sales ....
Charge for consignment sales
Shareholders' subscriptions
Receipts from customers,
including overpayment of P10,000
106,000
1,250,000 | Write offs ...
25,000 Merchandise returns
1,240,000
7,000
5,500
60,000 Allowance to customers for
Recovery of previous write-offs
Refunds to customers with credit balances ...
5,000
5,000 | Collection on subscription
50,000
shipping damages
Collections on carrier claims
3,000
2,000
45,000
Deposit on contract
Claim against common carrier for
shipping damages
IOUS from employees
Cash advances to affiliate
Advances to supplier
5,000
1,000
50,000
10,000
Audit notes:
a) It was ascertained that half of the adjusted outstanding accounts receivable – trade balance are still currently collectible.
The term of sale is 5/30, n/60. Based on past…
Question 28
The sum of customers' unpaid balances that is compared to the general ledger comes from:
the total of sales invoices
a total of shipping orders
the sales journal
the accounts receivable trial balance
Chapter 4 Solutions
Accounting: What the Numbers Mean
Ch. 4 - Prob. 4.1MECh. 4 - Mini-Exercise 4.2 LO 2, 6, 7 Record transactions...Ch. 4 - Prob. 4.3MECh. 4 - Prob. 4.4MECh. 4 - Exercise 4.5 LO 2. 6, 7 Record transactions and...Ch. 4 - Exercise 4.6 LO 2. 6, 7 Record transactions and...Ch. 4 - Exercise 4.7 LO 6 Write journal entries Write the...Ch. 4 - Exercise 4.8 LQ 6 Write journal entries Write the...Ch. 4 - Exercise 4.9 LO 2, 6, 7 Record transactions and...Ch. 4 - Exercise 4.10 LO 2. 6, 7 Record transactions and...
Ch. 4 - Exercise 4.11 LO 2. 6, 7 Record transactions and...Ch. 4 - Exercise 4.12 LO 2, 6, 7 Record transactions and...Ch. 4 - Exercise 4.13 LO 3 Calculate retained earnings On...Ch. 4 - Prob. 4.14ECh. 4 - Exercise 4.15 LO 6 . 7 Notes receivable-interest...Ch. 4 - Exercise 4.16 LO 6, 7 Notes payable-interest...Ch. 4 - Exercise 4.17 LO 6, 7 Effect of adjustments on net...Ch. 4 - Exercise 4.18 LO 6, 7 Effects of adjustments A...Ch. 4 - Exercise 4.19 LO 6 , 7 T-account analysis Answer...Ch. 4 - Exercise 4.20 LO 6, 7 Transaction analysis using...Ch. 4 - Problem 4.21 LO 2, 6, 7 Record transactions and...Ch. 4 - Prob. 4.22PCh. 4 - Prob. 4.23PCh. 4 - Problem 4.24 LO 6. 7 Calculate income from...Ch. 4 - Prob. 4.25PCh. 4 - Prob. 4.26PCh. 4 - Problem 4.27 LO 6. 7 Analyze several accounts...Ch. 4 - Prob. 4.28PCh. 4 - Case 4.29LO 6, 7Capstone analytical review of...Ch. 4 - Prob. 4.30C
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