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Can someone please answer? 10. 2011 2010 Sales $5,000,000 $800,000 Bad Debts Expense 100,000 40,000 Accounts...

Can someone please answer?

10.

2011

2010

Sales

$5,000,000

$800,000

Bad Debts Expense

100,000

40,000

Accounts Receivable (gross)

$400,000

$200,000

(Adjusted Balances at December 31)

Allowance for Bad Debts

10,000

20,000

(Adjusted Balances at December 31)

On the basis of the information provided for BEST SALES:

Accounts receivable written off in 2011 totaled $10,000. .

Accounts receivable written off in 2011 totaled $100,000.

Accounts receivable written off in 2011 totaled $110,000.

Accounts receivable written off in 2011 totaled $120,000.

None of the above.

11.

2011

2010

Sales

$5,000,000

$800,000

Bad Debts Expense

100,000

40,000

Accounts Receivable (gross)

$400,000

$200,000

(Adjusted Balances at December 31)

Allowance for Bad Debts

10,000

20,000

(Adjusted Balances at December 31)

On the basis of the information provided for BEST SALES:

I feel that the relationship between Bad Debts Expense and Sales seems reasonable from the year 2010 to 2011.

I feel that the relationship between Allowance for Bad Debts and Accounts Receivable seems reasonable from the year 2010 to 2011.

I feel concerned about the relationship between Bad Debts Expense and Sales from the year 2010 to 2011.

None of the above.

12.

2011

2010

Sales

$5,000,000

$800,000

Bad Debts Expense

100,000

40,000

Accounts Receivable (gross)

$400,000

$200,000

(Adjusted Balances at December 31)

Allowance for Bad Debts

10,000

20,000

(Adjusted Balances at December 31)

If BEST SALES used the direct write-off method, Bad Debts Expense for 2011 would be:

$10,000.

$100,000.

$110,000.

$120,000.

None of the above.

15.

  1. The following selected information is taken from the books of the Marlin Company for 2011.   (Note: You may not need to use all of the information below to answer these questions.)

    Cash                     6,000            Sales returns and allowances 100

    Sales discounts     400            Purchases returns and allowances 200

    Sales   9,200            Inventory, 1/1/2011   5,000

    Purchases    41,000            Inventory, 12/31/2011   3,000

    Selling expense    11,000            Purchases discounts   100

    Interest expense    200            Transportation - in   1,000

    Accounts payable     13,000            Transportation - out 1,500

    Net Sales for the period is:

    $ 78,700

    $ 79,200

    $ 78,800

    $ 79,100

    None of the above

Solutions

Expert Solution

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Answer 10
Allowance for Bad Debts as on 31st December 2010        20,000.00
Add: bad debt expensed in 2011      100,000.00
Less: Allowance for Bad Debts as on 31st December 2011        10,000.00
Bad debt written off      110,000.00
So Accounts receivable written off in 2011 totaled $110,000.
Answer 11 2011 2010
Sales 5,000,000.00 800,000.00
Bad Debts Expense      100,000.00     40,000.00
Bad Debts Expense % of sales 2.00% 5.00%
Accounts Receivable (gross)      400,000.00 200,000.00
Allowance for Bad Debts        10,000.00     20,000.00
Allowance for Bad Debts % of Accounts Receivable 2.50% 10.00%
None of the above.
Because all the ratios has decreased from 2010 which is god for the company.
Answer 12
If BEST SALES used the direct write-off method, Bad Debts Expense for 2011 would be: $ 100,00.
Answer 15
Sales        79,200.00
Less: Sales returns and allowances              100.00
Less: Sales discounts              400.00
Net Sales for the period        78,700.00

ekkarill92 answered 1 year ago
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