Question 1

Financial Statement data for the years ended December 31 for Parker Corporation is as follows:
2012 2011
Net Sales $2,595,600 $2,409,500
Accounts Receivable
Beginning of the year $ 390,000 $400,000
End of the year 434,000 390,000
a) Determine the accounts receivable turnover for 2012 and 2011.
b) Determine the number of days' sales in receivables for 2012 and 2011.
c) Does the change in accounts receivable turnover and number of days' sales in receivables from 2011 to 2012 indicate a favorable or unfavorable trend.?

Accepted Answer

The answer of Financial Statement data for the years ended...

Question 2

For each of the following notes receivables held by Rogers Company determine the interest revenue to be reported on the income statements for 2011 and 2012. Round answers to nearest whole dollar.
 $\begin{array}{|l|l|l|l|l|l|}
\hline 2012 \text{~Interest Revenue} & 2011 \text{~Interest Revenue} & \text{Time} & \text{Rate} & \text{Face} & \text{Date} \
\hline & & 180 \text{~days} & 7\% & \$15,000 & \text{Aug8, 2011} \
\hline & & 60 \text{~days} & 8\% & \$22,000 & \text{Oct 7, 2011} \
\hline & & 90 \text{~days} & 8\% & \$30,000 & \text{Jan6, 2012} \
\hline & & 60 \text{~days} & 9\% & \$28,000 & \text{Nov 12, 2011} \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following notes receivables...

Question 3

Fill in the blanks related to the characteristics of a promissory note:

Accepted Answer

The answer of Fill in the blanks related to the...

Question 4

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000.
Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

Accepted Answer

The answer of At the end of the current year,...

Question 5

At the end of the current year, Accounts Receivable has a balance of $90,000; Allowance for Doubtful Accounts has a credit balance of $850; and net sales for the year total $300,000. Bad debt expense is estimated at 2.5% of net sales.
Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

Accepted Answer

The answer of At the end of the current year,...

Question 6

Journalize the following transactions for Solley Company that occurred during 2011 and 2012.
November 14, 2011 Received a $4,800.00, 90-day, 9% note from Alan Hibbetts in payment of his account.
December 31, 2011 Accrued interest on the Hibbetts note.
February 12, 2012 Received the amount due from Hibbetts on his note.

Accepted Answer

The answer of Journalize the following transactions for Solley Company...

Question 7

At the end of the current year, Accounts Receivable has a balance of $850,000; Allowance for Doubtful Accounts has a debit balance of $3,500; and net sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $35,000.
Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

Accepted Answer

The answer of At the end of the current year,...

Question 8

Journalize the following transactions in the accounts of Simmons Company:

Accepted Answer

The answer of Journalize the following transactions in the accounts...

Question 9

Discuss the (1) focus and (2) financial statement emphasis of (a) the percent of sales and (b) the analysis of receivables methods of estimating bad debts.

Accepted Answer

The answer of Discuss the (1) focus and (2) financial...

Question 10

Mr. Potts issued a 90-day, 7% note for $200,000, dated February 3rd to Valley Co. on account. (Assume a 360-day year when calculating interest.)
a. Determine the due date of the note.
b. Determine the interest.
c. Determine the maturity value of the note.
d. Journalize the entry to record the issuance of the note by Potts on Feb. 3.
e. Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.

Accepted Answer

The answer of Mr. Potts issued a 90-day, 7% note...

Question 11

a) The aging of Torme Designs shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible.
  b) If the Allowance for Doubtful Accounts has a credit balance of $1,135.00, record the adjusting entry for the bad debt expense for the year.

Accepted Answer

The answer of a) The aging of Torme Designs shown...

Question 12

At the end of the current year, Accounts Receivable has a balance of $900,000; Allowance for Doubtful Accounts has a debit balance of $3,500; and net sales for the year total $4,000,000. Bad debt expense is estimated at 1/2 of 1% of net sales.
Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

Accepted Answer

The answer of At the end of the current year,...

Question 13

Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on account.

Accepted Answer

The answer of Sunshine Service Center received a 120-day, 6%...

Question 14

Fellows Corporation has determined that the $1,500 accounts receivable due from Andrew Stevens is uncollectible. Compare the journal entry that is required under the direct write-off method to the journal entry that is required using the allowance method.

Accepted Answer

The answer of Fellows Corporation has determined that the $1,500...

Question 15

For each of the following scenarios, indicate the Bad Debt Expense to be recorded in 2011, the balance in the Allowance for Doubtful Accounts Account at December 31, 2011, and the net realizable value of the Accounts Receivable at December 31, 2011:

Accepted Answer

The answer of For each of the following scenarios, indicate...

Question 16

On June 30th (the end of the period) Brown Company has a credit balance of $2,275 in Allowance for Doubtful Accounts. An evaluation of accounts receivable indicates that the proper balance should be $30,025. Journalize the appropriate adjusting entry.

Accepted Answer

The answer of On June 30th (the end of the...

Question 17

Based on the following data and using a 365-day year, compute (a) the accounts receivable turnover and (b) the number of days' sales in receivables. The industry average is a collection period of once every 20 days, and the number of days' sales in receivables averages 25. (c) Comment on this situation.

Accepted Answer

The answer of Based on the following data and using...

Question 18

Determine the due date and amount of interest due at maturity on the following notes:

Accepted Answer

The answer of Determine the due date and amount of...

Question 19

Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12th the company receives a $550 check from Chad Thomas in settlement of Thomas' $1,100 outstanding accounts receivable. Due to Thomas' failing health he is closing his company and is expecting to make no further payments to Discount Mart. Journalize this declaration.

Accepted Answer

The answer of Discount Mart utilizes the allowance method of...

Question 20

Determine the due date and the amount of interest due at maturity on the following notes:

Accepted Answer

The answer of Determine the due date and the amount...

Quiz 8: Receivables

Fill in the blanks related to the characteristics of a promissory note:

Journalize the following transactions in the accounts of Simmons Company:

Discuss the (1) focus and (2) financial statement emphasis of (a) the percent of sales and (b) the analysis of receivables methods of estimating bad debts.

a) The aging of Torme Designs shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible. b) If the Allowance for Doubtful Accounts has a credit balance of $1,135.00, record the adjusting entry for the bad debt expense for the year.

Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on account.

Fellows Corporation has determined that the $1,500 accounts receivable due from Andrew Stevens is uncollectible. Compare the journal entry that is required under the direct write-off method to the journal entry that is required using the allowance method.

For each of the following scenarios, indicate the Bad Debt Expense to be recorded in 2011, the balance in the Allowance for Doubtful Accounts Account at December 31, 2011, and the net realizable value of the Accounts Receivable at December 31, 2011:

On June 30th (the end of the period) Brown Company has a credit balance of $2,275 in Allowance for Doubtful Accounts. An evaluation of accounts receivable indicates that the proper balance should be $30,025. Journalize the appropriate adjusting entry.

Determine the due date and amount of interest due at maturity on the following notes:

Determine the due date and the amount of interest due at maturity on the following notes: