Accounts Receivable started off with a balance of $1000 Inventory started off with a balance of...

Accounts Receivable started off with a balance of $1000

Inventory started off with a balance of $1800

Smith Foods sub ledger started off with a balance of 50.

Sold $500 to Smith Foods our cost 375

Sold $700 to Smith Foods our cost 525

Received payment from Smith Foods of $1200

Sold to $1000 to Smith Foods our cost 750

What is the ending balance of the inventory account, accounts receivable account and what is our Gross Profit? Show your work. (T accounts)

Expert Solution

Particulars	AR	Inventory	Smith foods	Gross profit
Balances	1,000	1,800	50
Sales	500	(375)	500	125
Sales	700	(525)	700	175
Receipt	(1,200)		(1,200)
Sales	1,000	(750)	1,000	250

Ending balance	2,000	150	1,050	550

Accounts receivable
Particulars	Debit	Particulars	Credit
Opening balance	1,000	Cash	1,200
Sales	500
Sales	700
Sales	1,000
		Ending balance	2,000


Inventory
Particulars	Debit	Particulars	Credit
Opening balance	1,800	Cost of goods sold	375
		Cost of goods sold	525
		Cost of goods sold	750
Ending balance	150

ekkarill92 answered 2 years ago

What are the entries when a customer pays off their old accounts receivable balance that was...

What are the entries when a customer pays off their old accounts receivable balance that was already written off?

A company has inventory balance of $24,318, accounts receivable of $9,637, and accounts payable of $14,365....

A company has inventory balance of $24,318, accounts receivable of $9,637, and accounts payable of $14,365. If the credit sales are $183,030 and cost of goods sold are $128,952, what is the company's cash (conversion) cycle in number of days? (Use ending balances and assume 365 days in a year.) A) 36.59 B) 37.61 C) 38.63 D) 39.64 E) 40.66

A company has inventory balance of $24,935, accounts receivable of $9,902, and accounts payable of $14,652....

A company has inventory balance of $24,935, accounts receivable of $9,902, and accounts payable of $14,652. If the credit sales are $186,978 and cost of goods sold are $132,477, what is the company's cash (conversion) cycle in number of days? (Use ending balances and assume 365 days in a year.)

A company has Cash of $1000, Accounts Receivable of $200, Inventory of $300, Long-Term Assets of...

A company has Cash of $1000, Accounts Receivable of $200, Inventory of $300, Long-Term Assets of $4000, Accounts Payable of $500 and a Long-Term Bank Loan of $5000. Calculate the company's current ratio. Question 1 options: 1 2 3 4 Question 2 Using the following information, calculate the inventory turnover for ABC Retailers: Sales are $4800, Cost of Goods Sold is $2000, operating expenses are $1000, and average inventory is $500. Question 2 options: 4 5 6 7 Question 3...

Exercise 7-6A Effect of recovering a receivable previously written off LO 7-1 The accounts receivable balance...

Exercise 7-6A Effect of recovering a receivable previously written off LO 7-1 The accounts receivable balance for Renue Spa at December 31, Year 1, was $83,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,600. During Year 2, $2,100 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $150 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $215,000, and...

Account Beginning Balance Ending Balance Inventory $2,600 $2,890 Accounts receivable $3,222 $2,800 Accounts payable $2,500 $2,670...

Account Beginning Balance Ending Balance Inventory $2,600 $2,890 Accounts receivable $3,222 $2,800 Accounts payable $2,500 $2,670 Net sales $24,589 Cost of goods sold $19,630 What is the operating cycle? a. 51.04 days b. 95.74 days c. 48.07 days d. 99.11 days Following Question 1, what is the cash cycle? a. 44.70 days b. 48.07 days c. 47.67 days d. 51.04 days

The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...

The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $410,000; allowance for uncollectible accounts at the beginning of the year, $30,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $21,000; cash collections from customers, $1,400,000. Assuming the company estimates that future bad debts will equal 8% of the year-end balance in accounts receivable. 1. Calculate the year-end balance in the allowance for uncollectible accounts....

Why does the write-off of uncollectible accounts have no effect on the accounts receivable on the...

Why does the write-off of uncollectible accounts have no effect on the accounts receivable on the balance sheet if bad debts are estimated? If not directly written off as bad debts expense how does a company properly recognize uncollectible receivable activity on the income statement? Why are controls over the cash asset so important? What risks exist if adequate controls are not in place? Why is it important to distinguish between current assets and long term assets? What concerns would...

The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning...

The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $420,000; allowance for uncollectible accounts at the beginning of the year, $31,000 (credit balance); credit sales during the year, $1,550,000; accounts receivable written off during the year, $22,000; cash collections from customers, $1,600,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in the...

The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning...

The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year. ( Please...

Question