The financial statements of the Tigger Manufacturing Company reports net sales of S560,000 and net accounts receivable of $132,000 and S92,000 at the beginning of the year and end of year, respectively. If Tigger normally extends credit terms of 2/10, n/45 to his customers, is Tigger doing a good job of collecting cash payments from his customers? no yes
Q: ABC Sportswear Company had accounts receivable of $206,024,000 at the beginning of a recent year,…
A: Cash receipts from customers will be equal to : Accounts receivables at the beginning of the year +…
Q: Van Company provided the following data for the current year in relation to accounts receivable:…
A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…
Q: The following transactions affecting the accounts receivable of FST Inc. took place during the year…
A: Account Receivable Opening balance on January 1 950,000 Add: Credit sales made during the year…
Q: t the beginning of the period, International Accounting Standards Board (Board) had a cash balance…
A: Solution: Ending cash balance = Beginning cash balance + Collection of accounts receivables -…
Q: The following balances have been excerpted from Chlorine's Statement of Financial Position for the…
A: SOLUTION- FORMULAS 1- TOTAL GROSS SALES ON ACCOUNT = TOTAL GROSS SALES - CASH SALES . 2-TOTAL NET…
Q: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and…
A: Under accrual basis, the income and expenses are recorded when they are incurred.
Q: During its first year of operations, Cooper Company bills credit customers $19,800 for services…
A: As per accounting concept, revenue and expenses should be recognized on accrual basis. It means,…
Q: (d) The company collects $4,500 of the $18,000 of accounts that was determined to be uncollectible…
A: When bad debts are written-off using the allowance method, the allowance account reduces and is…
Q: The company Young Furniture has the following business transactions in the year 01. Always assume…
A: Calculation of VAT for each transaction 1. 65,000 * 19 % = 12,350 Gross Amount= 65,000+12,350 =…
Q: Suppose Columbia Sportswear Company (USA) had accounts receivable of $205,025,000 at the beginning…
A:
Q: At year-end, StickStick has cash of $ 22 comma 000$22,000, current accounts receivable of $ 80…
A: Calculate the receivables turnover ratio.
Q: Bill Sankey is a sole proprietor who keeps records of his cash and bank transactions. This…
A: The statement of profit or loss refers to the statement prepared at the end of a reporting period to…
Q: The following transactions affecting the accounts receivable of FST Inc. took place during the year…
A: Allowance Method - Under allowance method company make provision of uncollectible accounts at the…
Q: On its second year of operations, BBQ Co. thought of expanding its business. In order to generate…
A: Factoring of accounts receivables: Factoring of accounts receivable is done in order to get…
Q: The Dimitros Company records the following transactions during September 2018: Cash sales to…
A: Sales Revenue - Sales are recorded by company on cash and on credit basis. Cash collected is…
Q: In its income statement for the year ended December 31, 2020, Angel Company reported revenue of…
A: Cash basis of accounting - As per this concept, financial events are recorded in the books for which…
Q: Suppose Columbia Sportswear Company had accounts receivable of $206,024,000 at the beginning of a…
A: Amount of cash receipts from customers = Beginning Accounts receivable + Sales revenue - Ending…
Q: Mr. Husker’s Tuxedos Corp. ended the year 2021 with an average collection period of 33 days. The…
A: Average Collection period = Average receivables x 365 / Credit salesHence, average receivables =…
Q: The following balances have been excerpted from Chlorine's Statement of Financial Position for the…
A: The money left over after deducting the costs of producing a product or providing a service is known…
Q: Clariza Frozen Goods Inc. opened its business on January 1, 2020. The Company has the following…
A: The following calculations are done for Clariza Frozen Goods Incorporation.
Q: Von Company provided the following data for the current year in relation to accounts receivable:…
A:
Q: Maxwell Furniture Center had accounts receivable of $20,000 at the beginning of the year and $54,000…
A: Accounts receivable is increased by ($54,000-$20,000) $34,000 during the year.
Q: Starboy Company has the following data relating to accounts receivable for the year ended December…
A: The answer is as: Note: Answering first three subparts as there are multiple subparts, please…
Q: Use the information in each of the following separate cases to calculate the unknown amount. a.…
A: >Accounts Payable is the accumulated balance that the company or organisation owes to suppliers…
Q: The following balances have been excerpted from Chlorine's Statement of Financial Position for the…
A: 1. Gross sales on account = Accounts receivable, increase + Accounts written-off + Cash received…
Q: What is the amount of cash received from customers during the year?
A: There are two types of Sales: (1) Cash Sales and (2) Credit Sales. Cash is received immediately at…
Q: Presented below is information for Concord Company. 1. Beginning-of-the-year Accounts Receivable…
A: Accounts Receivable Turnover Ratio = Sales Revenue/ Average Accounts Receivable Days to collect…
Q: Presented below is information for Windsor, Inc. for 2017: 1. Beginning-of-the-year Accounts…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: The accounting records and bank statement of Jeff's Seashell Store provide the following information…
A: The question is based on the concept of the Bank Reconciliation Statement. A bank reconciliation…
Q: tar Company provided the following transactions affecting accounts receivable during the year ended…
A: Given that Balances from jan 1 2014 statement of financial position: Accounts receivable 950000…
Q: Love Company experienced the following changes in selected accounts for the current year: ·…
A: Accrual sales - P6,000,000 Account receivable, January 1- P1,000,000 Account receivable, December…
Q: Bailey Co earns $27,792 of revenue on account and in $6,256 cash revenue transactions in Year 1.…
A: Under the accrual basis of accounting, recognition of revenues and expenses is made as and when they…
Q: Presented below is information for Jones Company. 1. Beginning-of-the-year Accounts Receivable…
A:
Q: Mickey Mouse Company has the following data relating to accounts receivable for the year ended…
A: The balance in account receivables is calculated after all the adjustment for credit sales and…
Q: Yanie's coffee beans store had accounts receivable of $18,000 at the beginning of the year and…
A: Cash received from customers = Beginning balance of Accounts Receivable + Credit sales during the…
Q: Presented below are the receivables of One Time Big Time Corporation as of December 31, 2018. Mr. A…
A:
Q: The following balances have been excerpted from Chlorine's Statement of Financial Position for the…
A: Account payable means the amount owed by business to outsider for the goods received and services…
Q: On January 1, 2022, the ledger of Splish Brothers Inc. contained these liability accounts.…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: egan December with an accounts receivable balance (net of bad debts) of €25,000. b. Walken had…
A: Preparation of cash and accounts receivables lines for the current section of the balance sheet:Cash…
Q: The following transactions occurred during the month of October 2021. Date Transactions 1 2 3 4 5 6…
A: The cash book is prepared to record the cash transactions and bank transactions incurred during the…
Q: Presented below is information for Concord Company. 1. Beginning-of-the-year Accounts Receivable…
A: Part 2) Computation of closing balance of accounts receivable is as follows:
Q: The balance in Accounts Receivable at the beginning of the year was $520,000. The balance in…
A: Credit sales is a term in which the goods is transferred to the customer on a credit basis. In which…
Q: Presented below is information for Sunland Company. 1. Beginning-of-the-year Accounts Receivable…
A: Journal: Recording of a business transactions in a chronological order.
Q: Dedpul Company provided the following transactions affecting accounts receivable during the current…
A: The account receivable is referred to as the amount that a company is yet to received from its…
Q: 9 Maxwell Furniture Centre had accounts receivable of $20000 at the beginning of the year and $54000…
A: Collections from customers is the result of beginning account receivable plus credit sales during…
Q: Skinner Corp. required additional cash for its operation and used its accounts receivable to raise…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: Using the data in the preceding question, what will the income statement for the year ended December…
A: Note receivable:Note receivable refers to a written promise by a debtor for the amounts to be…
Q: The following selected transactions occurred during the year ended December 31, 2026 of RANOA…
A: Under allowance method based on a percentage on sales, a percentage is applied on the net credit…
Step by step
Solved in 2 steps
- You are an investor looking to contribute financially to either company A or Company B. The following, select financial information as follows. Company A and company B, respectively: Beginning Account Receivable $ 50,000, 60,000; Ending Account Receivable $ 80,000, 90,000; Net credit sales $ 550,000, $460,000. Based on the information provided: compute the account receivable turnover ratio. Compute the number of days sales in receivables ratio for both companies A and company B ( round all answers to two decimals places) Interpret the outcomes stating which company you would invest in and why.A company has a 30-day credit terms to its customers. It has a total of P120,000 in their accounts receivable, along with an annual revenue of P800,000. Compute for the Accounts Receivable days. Did the company meet its credit terms for the customers? Why? What advise can you give to the company regarding proper accounts receivables management?Larry’s Lawn Equipment Company gives terms of 2/10, n/30. Larry hasannual credit sales of $500,000 and average accounts receivable of $60,000.a. What is Larry’s accounts receivable turnover?b. What is Larry’s average daily collection?c. What is the relationship between the terms that Larry is giving and hisaverage daily collection?
- Mr. Husker’s Tuxedos Corp. ended the year 2021 with an average collection period of 33 days. The firm’s credit sales for 2021 were $56.2 million. What is the year-end 2021 balance in accounts receivable for Mr. Husker’s Tuxedos? (Enter your answer in dollars not in millions.) Accounts Receivable = __________ed Softee Sodas and Patterson Beverage Company are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 2018 $ 35,660 4,130 550 3,580 Softee Sodas 2017 $ 39,520 4,390 540 3,850 Patterson Beverage Company 2016 $ 44,440 4,580 530 4,050 2018 $ 71,440 7,680 100 7,580 2017 $ 72,120 7,590 130 2016 $ 66,660 7,250 140 7,460 7,110 Required: 1. Calculate the receivables turnover ratios and days to collect for Softee Sodas and Patterson Beverage Company for 2018 and 2017. 2-a. Which of the companies was quicker to convert its receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash…Presented below is information for Ayayai Company. 1. Beginning-of-the-year Accounts Receivable balance was $23,100. 2. Net sales (all on account) for the year were $104,700. Ayayai does not offer cash discounts. 3. Collections on accounts receivable during the year were $85,400. Ayayai is planning to factor some accounts receivable at the end of the year. Accounts totaling $13,900 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $1,075. Prepare the journal entry to record the sale of the receivables. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
- The following facts apply to Walken Company during December 2021: a. Walken began December with an accounts receivable balance (net of bad debts) of €25,000.b. Walken had credit sales of €85,000.c. Walken had cash collections of €30,000.d. Walken factored €20,000 of net accounts receivable with Reliable Factor Company, transferring allrisks and rewards associated with the receivable, and otherwise meeting all criteria necessary toqualify for treating the transfer of receivables as a sale.e. Walken factored €15,000 of net accounts receivable with Dependable Factor Company, retainingall risks and rewards associated with the receivable, and otherwise meeting all criteria necessaryto qualify for treating the transfer of receivables as a sale.f. Walken did not recognize any additional bad debts expense, and had no write-offs of bad debtsduring the month.g. At December 31, 2021, Walken had a balance of €40,000 of cash at M&V Bank and an overdraft of(€5,000) at First National Bank. (That…Presented below is information for Concord Company. 1. Beginning-of-the-year Accounts Receivable balance was $16,400. 2. Net sales (all on account) for the year were $104,000. Concord does not offer cash discounts. 3. Collections on accounts receivable during the year were $86,400. Concord is planning to factor some accounts receivable at the end of the year. Accounts totaling $11,800 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $1,173. I finished the first part which Prepare the journal entry to record the sale of the receivables. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit cash 10502…The accounts receivable balance on the records of of P38,000 were written off during the year as uncollectible. eud was P283,000. In going over the records, you found accounts reccivable REQUIRED: How much cash was received from the sale of the machine? during the year ended December 31, 2020. The accounts receivable at year- REQUIRED: How much cash was collected on credit sales during the year. Luneta Company of January 1, 2020. Credit sales were recorded at P1,060.000 P245,000 on durine p283.000. In going over the records, you found accounts reccivable PEOUIRED: How much cash was collected on credit sales during the year 2020 ? The manager of the Pansol Company is planning for the qaurter ending Narch 31, 2020, and wants to know how much cash must be paid for merchandise purchases. The inventory of merechandise is to be deereased by P46,000 during the quarter. Sales have been estimated at P360,000. The cost of saies is equal to 30% of sales. Accounts payable is expected to inerease…
- Presented below is information for Concord Company. 1. Beginning-of-the-year Accounts Receivable balance was $16,400. 2. Net sales (all on account) for the year were $104,000. Concord does not offer cash discounts. 3. Collections on accounts receivable during the year were $86,400. Concord is planning to factor some accounts receivable at the end of the year. Accounts totaling $11,800 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $1,173. I finished the first part which Prepare the journal entry to record the sale of the receivables. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit cash 10502…In the statement of financial position at 31 December 20X5, Ken reported net receivables of $12,000. During 20X6 Ken made sales on credit of $125,000 and received cash from credit customers amounting to $ 115,500. At 31 December 20X6, Ken wished to write off debts of $7,100 and increase the allowance for receivables by $950 to $2,100. What is the net receivables figure to include in the statement of financial position at 31 December 20X6?Using the data in the preceding question, what will the income statement for the year ended December 31 report for this situation? Nothing because the business has not received the cash yet Note receivable of $8,400 Interest revenue of $700 Both b and c Reference Problem On December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. The interest of 10% has accrued for 10 months on the note. What will Crain’s financial statements report for this situation? The balance sheet will report the note receivable of $8,400. The balance sheet will report the note receivable of $8,400 and interest receivable of $700. Nothing because the business has not received the cash yet. The income statement will report a note receivable of $8,400.