Question
In: Accounting
1.) The following information is from the 2019 records of Fast Lane Racing Gear: Accounts receivable,...
1.) The following information is from the 2019 records of Fast Lane Racing Gear:
|
Accounts receivable, December 31, 2019 |
$44,000 (debit) |
|
Allowance for Bad Debts, December 31, 2019 prior to adjustment |
1,800 (debit) |
|
Net credit sales for 2019 |
178,000 |
|
Accounts written off as uncollectible during 2019 |
16,000 |
|
Cash sales during 2019 |
28,000 |
Bad debts expense is estimated by the aging-of−receivables method. Management estimates that $10,000 of accounts receivable will be uncollectible. Calculate the ending balance of Allowance for Bad Debts, after the adjustment for bad debts expense, at December 31, 2019.
2.) Refer to the following information for Tolan Corporation:
• Common Stock, $1.00 par, 104,000 shares issued,97,000 shares outstanding
• Paid−In Capital in Excess of Par—Common: $2,340,000
• Retained Earnings: $950,000
• Treasury Stock: 7,000 shares purchased at $29.00 per share
If Tolan resold 1 comma 2001,200 shares of treasury stock for $17.00 per share, which of the following statements would be true?
Solutions
ekkarill92 answered 10 months agoRelated Solutions
The following information is from the 2017 records of Lane Bicycle Shop: Accounts receivable, December 31,...
The following information is from the 2017 records of Lane
Bicycle Shop:
Accounts receivable, December 31, 2017
$41,000 (debit)
Allowance for Bad Debts, December 31, 2017
prior to adjustment
1,500 (debit)
Net credit sales for 2017
180,000
Accounts written off as uncollectible during 2017
20,000
Cash sales during 2017
27,000
Bad debts expense is estimated by the aging-of-receivables
method. Management estimates that $6,000 of accounts receivable
will be uncollectible. Calculate the ending balance of Allowance
for Bad Debts, after the...
The following information is from the 2019 records of Rawhide Leather Products. Accounts Receivable, December 31,...
The following information is from the 2019 records of Rawhide
Leather Products.
Accounts Receivable, December 31, 2019
$330,000 (debit)
Allowance for uncollectible accounts, December 31, 2019
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4,500 (credit)
Net credit sales for 2019
1,500,000
Accounts written off as uncollectible during 2019
25,500
Cash sales during 2019
270,000
1) Refer to Table 9.2. Uncollectible accounts expense is
estimated by the percent-of-sales method.
Management estimates that 2% of net sales...
The information on the following page was obtained from the records of Breanna, Inc.: Accounts receivable...
The information on the following page was obtained from the
records of Breanna, Inc.:
Accounts receivable
$
10,200
Accumulated depreciation
50,900
Cost of goods sold
124,000
Income tax expense
9,000
Cash
61,000
Sales
196,000
Equipment
124,000
Selling, general, and
administrative expenses
31,000
Common stock (9,100 shares)
95,000
Accounts payable
11,900
Retained earnings, 1/1/16
23,500
Interest expense
5,400
Merchandise inventory
38,400
Long-term debt
39,000
Dividends declared and paid
during 2016
13,300
Except as otherwise indicated, assume that all balance sheet
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23. The following information was abstracted from the records of the Martez Corporation: Accounts receivable, December...
23. The following information was abstracted from the records of
the Martez Corporation:
Accounts receivable, December 31, 2017
$ 700,000
Allowance for bad debt before adjustment, December 31, 2017
16,000 (cr.)
Sales (2017)
2,080,000
Sales discounts (2017)
28,000
Sales returns and allowances (2017)
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Prepare the adjusting entry for Bad Debt
expenseunder each of the following assumptions:
1.
5 percent of outstanding accounts receivable are
uncollectible.
2.
4% of Net Sales
3.
An aging schedule of the accounts shows that $23,500...
The following information comes from the 2019 Annual Report of the Cola Company: Accounts Receivable at...
The following information comes from the 2019 Annual Report of
the Cola Company:
Accounts Receivable at 1/1/19 $ 3,141
Allowance for Uncollectible Acconts at 1/1/19 51
2019 Sales (assume all were on credit) 30,990
2018 Collections of cash from customers 30,289
Write off of Customer Accounts 22
2019 estimate of Uncollectible Accounts 26
Required:
Prepare t-accounts showing how the above activity flows through the
Cola
Company's accounts. MAKE SURE TO SHOW THE ENDING BALANCE (Label
"Balance"FOR EACH ACCOUNT)
Then answer...
The following information appeared in the financial records of the Cracker Corporation at year-end: Accounts receivable...
The following information appeared in the financial records of
the Cracker Corporation at year-end:
Accounts receivable
$ 23,000
Accounts payable
11,000
Supplies
9,000
Cash
8,000
Equipment
138,000
Capital stock
130,000
If the beginning of year balance in retained earnings is $30,000
and $12,000 in dividends are paid during the year, net income for
the year was:
$18,000
$57,000
$19,000
$39,000
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Sun Corp. reported the following information for 2018 and 2019.
2018 2019 Accounts receivable $150 000 $120 000 Prepaid expenses 9
000 10 000 Accounts payable 65 000 80 000 Salaries payable 12 000 5
000 Income (profits or more correctly total comprehensive income)
200 000 Depreciation expense 14 000 Gain on sale of equipment 6 000
If Sun Corp. uses the indirect method to prepare the operating
activities section of the statement of cash flows, what amount will
be...
Calculate the 2019 accounts receivable turnover for Acme Inc. based on the following information (round to...
Calculate the 2019 accounts receivable turnover for Acme Inc.
based on the following information (round to 2 decimals)
2019 2018
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Accounts Receivable $250,000 $260,000
Allowance 4 bad debit $7500 $7800
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....
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...
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