COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Chapter 9, Problem 1.6SRA
To determine
Determine whether the Cash Short or Overage is a problem or not.
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A company’s accounts receivable balance after posting net collections from customers is $150,000. Management has determined the following: $100,000 of the accounts that are 1 to 30 days past due are 2% uncollectible; and $50,000 of the accounts that are 31 to 60 days past due are 10% uncollectible. What is the net realizable value of the accounts receivable?
$150,000
$148,000
$145,000
$143,000
4. On average it takes Acme Tool Company 80 days to collect on its sales receivables, and its operating cycle is 290 days.
a. How long is cash typically tied up in inventories? (Show computations)
b. What would be the likely effect to Acme's operating cycle if the company changes its current policy that sales upon credit must be paid within 3 months, instead requiring payment within 2 months? (No calculations needed, just describe the likely effect on Acme's operating cycle.)
For each of the following situation, solve for a missing amount. In each case, there is only one debit entry and one credit entry in the account during the month.Requirement 1:a. Accounts Receivable had a balance of $1,080 at the beginning of the month and $810 at the end of the month. Credit sales totaled $10,800 during the month. Calculate the cash collected from customers during the month, assuming that all sales were made on account.
b. The Supplies account had a balance of $486 at the beginning of the month and $657 at the end of the month. The cost of supplies used during the month was $2,106. Calculate the cost of supplies purchased during the month.
c. Wages Payable had a balance of $369 at the beginning of the month. During the month, $3,420 of wages were paid to employees. Wages Expense accrued during the month totaled $3,690. Calculate the balance of Wages Payable at the end of the month.
Chapter 9 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 9 - Prob. 1.1SRQCh. 9 - What is a promissory note? In what situation would...Ch. 9 - How would the receipt of a 62 refund for supplies...Ch. 9 - Prob. 1.4SRECh. 9 - Prob. 1.5SRECh. 9 - Prob. 1.6SRACh. 9 - Prob. 2.1SRQCh. 9 - Prob. 2.2SRQCh. 9 - Prob. 2.3SRQCh. 9 - Prob. 2.4SRE
Ch. 9 - Prob. 2.5SRECh. 9 - Prob. 2.6SRACh. 9 - Prob. 3.1SRQCh. 9 - Prob. 3.2SRQCh. 9 - Prob. 3.3SRQCh. 9 - Prob. 3.4SRECh. 9 - Prob. 3.5SRECh. 9 - Prob. 3.6SRACh. 9 - Prob. 1CSRCh. 9 - Prob. 2CSRCh. 9 - Prob. 3CSRCh. 9 - Prob. 4CSRCh. 9 - Prob. 5CSRCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Prob. 13DQCh. 9 - Prob. 14DQCh. 9 - Prob. 15DQCh. 9 - Prob. 16DQCh. 9 - Prob. 17DQCh. 9 - Prob. 18DQCh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Journalizing cash receipts, cash short or over,...Ch. 9 - Prob. 2PACh. 9 - Prob. 3PACh. 9 - Prob. 4PACh. 9 - Prob. 5PACh. 9 - Prob. 6PACh. 9 - Prob. 1PBCh. 9 - Prob. 2PBCh. 9 - Prob. 3PBCh. 9 - Prob. 4PBCh. 9 - Prob. 5PBCh. 9 - Prob. 6PBCh. 9 - Prob. 1CTPCh. 9 - Prob. 2CTPCh. 9 - Prob. 1MFCh. 9 - Prob. 2MFCh. 9 - Prob. 3MFCh. 9 - Prob. 4MFCh. 9 - Prob. 5MFCh. 9 - Prob. 6MFCh. 9 - Prob. 7MFCh. 9 - Prob. 8MFCh. 9 - Borrowing from Petty Cash Daniel Brown is in...Ch. 9 - Prob. 1FSA
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- The days' sales uncollected ratio is used to: Measure how many days of sales remain until the end of the year. Determine the number of days that have passed without collecting on accounts receivable. Identify the likelihood of collecting sales on account. D. Estimate how much time is likely to pass before the amount of accounts receivable is collected.arrow_forwardHello, I have figured out problem (A). And most of problem (B) but I'm having trouble with figuring the "Allowance for Doubtful Account" because of this I can't get the answer for problem (C) I thought the answer would be $10,175 - But I am being told that this is wrong. Please see figure below: At the end of the current year, Accounts Receivable has a balance of $505,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,270,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. - $5,675 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $505,000 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $5675 c. Determine the net realizable value of accounts receivable. - $fill in the blank 5arrow_forwardHow much is left in the petty cash fund at the end of the month? Round your answer to the neareset cent and do not include the dollar sign ($) in your answer.arrow_forward
- In June, Widgets, Inc. makes on account sales to Customs Motors of $800 and receives a payment of $500 from them. How would this affect the Accounts Receivable control account? O A. The AR total would be decreased by $300. O B. The AR total would be decreased by $500. O C. The AR total would be increased by $800. O D. The AR total would be increased by $300.arrow_forwardThe aging of accounts receivable shows the following: P300,000 already 1-30 days past due; P200,000 already 31-60 past due; and P100,000, 61-90 days past due. Based on company experience, the rate of doubtful collections is as follows: 2%, 4% and 7%, respectively. 1. How much is the amount of uncollectible accounts from the 31-60 days past due? 2.arrow_forwardThe aging of accounts receivable shows the following: P300,000 already 1-30 days past due; P200,000 already 31-60 past due; and P100,000, 61-90 days past due. Based on company experience, the rate of doubtful collections is as follows: 2%, 4% and 7%, respectively. 1. How much is the net accounts receivable from the 1-30 days past due? 2.arrow_forward
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