Question
In: Accounting
Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial...
Minta Corporation is a leading manufacturer of sports apparel,
shoes, and equipment. The company’s 2017 financial statements
contain the following information ($ in millions):
| 2017 | 2016 | ||||
| Balance sheets: | |||||
| Accounts receivable, net | $ | 4,282 | $ | 3,846 | |
| Income statements: | |||||
| Sales revenue | $ | 36,055 | $ | 34,081 | |
A note disclosed that the allowance for uncollectible accounts had
a balance of $30 million and $54 million at the end of 2017 and
2016, respectively. Bad debt expense for 2017 was $51 million.
Assume that all sales are made on a credit basis.
Required:
1. What is the amount of gross (total) accounts
receivable due from customers at the end of 2017 and 2016?
2. What is the amount of bad debt write-offs
during 2017?
3. Analyze changes in the gross accounts
receivable account to calculate the amount of cash received from
customers during 2017.
4. Analyze changes in net accounts receivable to
calculate the amount of cash received from customers during
2017.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial...
Minta Corporation is a leading manufacturer of sports apparel,
shoes, and equipment. The company’s 2017 financial statements
contain the following information ($ in millions):
2017
2016
Balance sheets:
Accounts receivable, net
$
4,117
$
3,681
Income statements:
Sales revenue
$
35,590
$
33,616
A note disclosed that the allowance for uncollectible accounts had
a balance of $27 million and $51 million at the end of 2017 and
2016, respectively. Bad debt expense for 2017 was $48 million.
Assume that all...
Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial...
Minta Corporation is a leading manufacturer of sports apparel,
shoes, and equipment. The company’s 2017 financial statements
contain the following information ($ in millions):
2017
2016
Balance sheets:
Accounts receivable, net
$
4,667
$
4,231
Income statements:
Sales revenue
$
37,140
$
35,166
A note disclosed that the allowance for uncollectible accounts had
a balance of $37 million and $61 million at the end of 2017 and
2016, respectively. Bad debt expense for 2017 was $58 million.
Assume that all...
Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial...
Minta Corporation is a leading manufacturer of sports apparel,
shoes, and equipment. The company’s 2017 financial statements
contain the following information ($ in millions):
2017
2016
Balance sheets:
Accounts receivable, net
$
4,282
$
3,846
Income statements:
Sales revenue
$
36,055
$
34,081
A note disclosed that the allowance for uncollectible accounts had
a balance of $30 million and $54 million at the end of 2017 and
2016, respectively. Bad debt expense for 2017 was $51 million.
Assume that all...
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Lafayette Corporation is a leading manufacturer of sports
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statements contain the following information ($ in
millions):
2021
2020
Balance sheets:
Accounts receivable, net
$3,842
$3,406
Income statements:
Sales revenue
$34,815
$32,841
A note disclosed that the allowance for uncollectible accounts had
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Assume that all sales...
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Lafayette Corporation is a leading manufacturer of sports
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statements contain the following information ($ in
millions):
2021
2020
Balance Sheet: Accounts Receivable, net
$3,897
$3,461
Income Statement: Sales Revenue
$34,970
$32,996
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Jordan, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2015 financial...
Jordan, Inc., is a leading manufacturer of sports apparel,
shoes, and equipment. The company’s 2015 financial statements
contain the following information (in millions):
2015
2014
Balance sheets:
Accounts receivable, net
$
3,832
$
3,847
Income statements:
Sales revenue
$
27,328
$
25,346
A note disclosed that the allowance for uncollectible accounts had
a balance of $117 million and $104 million at the end of 2015 and
2014, respectively. Bad debt expense for 2015 was $45 million.
Assume that all sales...
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Delma Leathers Company is a manufacturer and seller of sports shoes. Information on budgeted sales in...
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Month
Units
February
2018
20,000
March 2018
24,000
April 2018
60,000
May 2018
45,000
June 2018
35,000
July 2018
30,000
Aug 2018
50,000
Required:
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Compact Electronics is a leading manufacturer of digital camera equipment
Compact Electronics is a leading manufacturer of digital camera equipment. Assume the following transactions occur during the year ended December 31, 2021.
Required:
Record any amounts as a result of each of these contingencies.
1. Accounts receivable were $29 million (all credit) at the end of 2021. Although no specific customer accounts have been shown to be uncollectible, the company estimates that 3% of accounts receivable will eventually prove uncollectible.
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Nike is the world’s leading designer, marketer, and distributor of authentic athletic footwear, apparel, equipment, and accessories. The following is a press release from the company: NIKE, INC. ANNOUNCES 11 PERCENT INCREASE IN QUARTERLY DIVIDEND BEAVERTON, Ore.—(BUSINESS WIRE)—NIKE, Inc. (NYSE: NKE) announced today that its Board of Directors has approved a quarterly cash dividend of $0.20 per share. . . . This represents an increase of 11 percent versus the prior quarterly dividend rate of $0.18 per share. The dividend...
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