Geary, Incorporated had the following sales during Year 1:
Geary also had the following beginning and ending balances in the following accounts:
Geary, who uses the allowance method, estimated that 3% of the credit sales will go uncollected. The credit card company charges Geary a 4% fee for handling credit card transactions.Required:Compute the uncollectible accounts expense for Year 1.Compute the credit card expense during Year 1.Determine the amount of net cash flows from operating activities during Year 1.

Question

Geary, Incorporated had the following sales during Year 1:
  Geary also had the following beginning and ending balances in the following accounts:
  Geary, who uses the allowance method, estimated that 3% of the credit sales will go uncollected. The credit card company charges Geary a 4% fee for handling credit card transactions.Required:Compute the uncollectible accounts expense for Year 1.Compute the credit card expense during Year 1.Determine the amount of net cash flows from operating activities during Year 1.

Quizplus · Accepted Answer

The Answer of Geary, Incorporated had the following sales during Year 1:
  Geary also had the following beginning and ending balances in the following accounts:
  Geary, who uses the allowance method, estimated that 3% of the credit sales will go uncollected. The credit card company charges Geary a 4% fee for handling credit card transactions.Required:Compute the uncollectible accounts expense for Year 1.Compute the credit card expense during Year 1.Determine the amount of net cash flows from operating activities during Year 1.

Geary, Incorporated Had the Following Sales During Year 1