20. As of January 1, 2021, Farley Co. had a credit balance of $528,000 in its...

20. As of January 1, 2021, Farley Co. had a credit balance of $528,000 in its allowance for uncollectible accounts. Based on experience, 4% of Farley's credit sales have been uncollectible. During 2021, Farley wrote off $640,000 of accounts receivable. Credit sales for 2021 were $18,600,000. In its December 31, 2021, balance sheet, what amount should Farley report as allowance for uncollectible accounts?

21. As of January 1, 2021, Barley Co. had a credit balance of $537,000 in its allowance for uncollectible accounts. Based on experience, 3% of Barley's gross accounts receivable have been uncollectible. During 2021, Barley wrote off $667,000 of accounts receivable. Barley's gross accounts receivable as December 31, 2021 is $18,850,000. In its December 31, 2021, balance sheet, what amount should Barley report as allowance for uncollectible accounts?

Solutions

Expert Solution

20. Allowance for Doubtful Accounts

= (18,600,000*4%)+528,000-640,000

= 632,000

21. Allowance for uncollectible Accounts

= 18,850,000*3%

= 565,500

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

10) Thatcher Company had a January 1, credit balance in its Allowance for Doubtful Accounts of...

10) Thatcher Company had a January 1, credit balance in its Allowance for Doubtful Accounts of $4,000 for the current year. The following transactions and events affected the Allowance for Doubtful Accounts during the current year: Apr 15 Bean's account receivable of $2,700 was deemed uncollectible. July 1 Cho paid the full amount of a previously written-off account receivable. This receivable of $1,300 had been written off in the prior year. Dec 31 Bad debts expense of $4,500 was...

The allowance for uncollectible accounts had a credit balance of $10,000 at the beginning of 2021.

Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $10,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $166,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 18,300. Required: 1. What was the balance in...

At January 1, 2021, Han Merchants had a balance in the Interest Payable account for several...

At January 1, 2021, Han Merchants had a balance in the Interest Payable account for several notes it had signed and given to suppliers in exchange for outstanding accounts payable. The following table contains the details of the notes payable and the balance of the interest accrued on each note as at the end of the last fiscal year, December 31, 2020. Supplier Note Principal Interest Rate Issue Date Term Interest Accrued 1 Tessier Inc. $5,700 4% Nov. 1, 2020...

On January 1, 2021, Displays Incorporated had the following account balances: Accounts Debit Credit Cash...

On January 1, 2021, Displays Incorporated had the following account balances: Accounts Debit Credit Cash $ 32,000 Accounts receivable 29,000 Supplies 35,000 Inventory 65,000 Land 237,000 Accounts payable $ 38,000 Notes payable (7%, due next year) 30,000 Common stock 196,000 Retained earnings 134,000 Totals $ 398,000 $ 398,000 From January 1 to December 31, the following summary transactions occurred: Purchased inventory on account for $340,000. Sold inventory on account for $620,000. The cost of the inventory sold was $320,000....

On January 1, 2021, Displays Incorporated had the following account balances: Accounts Debit Credit Cash...

On January 1, Henry Company's allowance for doubtful accounts had a credit balance of $44,000. The...

On January 1, Henry Company's allowance for doubtful accounts had a credit balance of $44,000. The balance in the Accounts Receivable account on that date was $185,000. On January 2, prior to any credit sales, a $14,500 account from Walco Company was deemed to be uncollectible and written off. Please show work and calculate: Compute the net realizable value of Henry’s receivables on January 1. What is the balance in the Accounts Receivable account immediately following the write-off of the...

Cycle Company had the following trial balance at 3/1/2021: Opening trial balance Account name Debit Credit...

Cycle Company had the following trial balance at 3/1/2021: Opening trial balance Account name Debit Credit Cash 100 Accounts receivable 450 Supplies 0 Equipment 600 Accumulated depreciation 70 Payables 0 Long-term debt 0 Contributed capital--common stock 400 Retained earnings 680 Dividends 0 Revenue 0 Selling Expense 0 Administrative Expense 0 Depreciation expense 0 Other expense 0 Total 1,150 1,150 4.3 Activity for the month of March Date Activity 3/1/2021 The company borrowed $1,000 on a two-year note, with...

Assume that, on January 1, 2021, Matsui Co. paid $2,529,600 for its investment in 105,400 shares...

Assume that, on January 1, 2021, Matsui Co. paid $2,529,600 for its investment in 105,400 shares of Yankee Inc. Further, assume that Yankee has 310,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $620,000 at January 1, 2021. The following information pertains to Yankee during 2021: Net income $ 310,000 Dividends declared and paid $ 93,000 Market price of common stock...

Kenzie Co. acquired 70% of McCready Co. on January 1, 2021. During 2021, Kenzie [NB1] made...

Kenzie Co. acquired 70% of McCready Co. on January 1, 2021. During 2021, Kenzie [NB1] made several sales of inventory to McCready. The cost and sales price of the goods were $150,000 and $220,000, respectively. McCready still owned one-fourth of the goods at the end of 2021. Consolidated cost of goods sold for 2021 was $2,280,000 due to a consolidating adjustment for intra-entity transfers less intra-entity gross profit in McCready’s ending inventory.How would consolidated cost of goods sold have differed...

At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 20...

At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,000 million face amount, convertible into 60 million common shares The following additional information is available: On September 1, 2021, Canaday sold 72 million additional shares of common stock. Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and...

Subjects