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Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 2% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. At the end of 2015, accounts receivable were $608,000 and the allowance account had a credit balance of $72,000. Accounts receivable activity for 2016 was as follows: Beginning balance $ 608,000 Credit sales 2,790,000 Collections (2,653,000) Write-offs (56,000) Ending balance $ 689,000 The company's controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Amount Percent Uncollectible 0-60 days $ 455,000 5 % 61-90 days 76,000 14 91-120 days 66,000 25 Over 120 days 92,000 40 Total $ 689,000 Required: 1. Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Prepare the necessary year-end adjusting entry for bad debt expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3-1. What is total bad debt expense for 2016? 3-2. How would accounts receivable appear in the 2016 balance sheet?
Report Chun Book Store’s plant assets on the company’s balance sheet at December 31, 2010. What will Chun’s income statement for the year ended December 31, 2010, report for this situation?
Misty's effective tax rate is 40% and there were 1,000 shares of common stock outstanding. What would be Misty's net income for the current year?
The plant and equipment had a further 5-year life and is depreciated on a straight line basis. The differences between carrying amounts and fair value on acquisition date are adjusted on consolidation. Geraldton Ltd uses the partial goodwill metho..
Boscan Corporation purchased machinery on January 1, 2014, at a cost of $345,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $28,900. Prepare separate depreciation schedules for..
Carter Containers sold marketable securities, land, and common stock for $36.0 million, $12.0 million, and $40.0 million, respectively. Carter also purchased treasury stock, equipment, and a patent for $24.0 million, $22.0 million, and $8.2 million, ..
Prepare an income statement and a schedule of cost of goods manufactured for the year ended December 31, 20--. Prepare a statement of retained earnings for the year ended December 31, 20--.
a company has had 10000 shares of 10 percent 100 par-value preferred stock and 80000 shares of 5 stated-value common
Why do you think that the company uses accelerated depreciation methods in its income tax returns?
What impact would the new capital structure have on the firm's net income, total dollar return to investors, and ROE and redo the analysis, but now assume that the debt financing would cost 15 percent.
How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions concerning these statements?
What types of capital budgeting factors would you look at when deciding whether to do this? What would be the relevant costs that you would consider in this decision?
Great Fender, which uses a standard cost accounting system, manufactured 20,000 boat fenders during 2014, using 144,000 square feet of extruded vinyl purchased at $1.05 per square foot. Production required 420 direct labor hours that cost $13.50 per ..
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