COMPREHENSIVE ADA TRANSACTIONS: 2020ABC Company began operations in 2020. Review the transactions and determine theamounts asked below.2020 transactions:1. $300,000 of credit sales2. $250,000 customer payments collected on credit sales3. Wrote off a $2,000 receivable from NotGonnaPay, INC a customer who went intobankruptcy.4. ABC Company estimates 3% of its Accounts Receivable at 12/31/20 will beuncollectable,*** REQUIRED***Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA.Please include your T Accounts in your PDF Upload, NO WORK = NO CREDITJournals are not required, but could be helpful in solving the problem.***REQUIRED*** answer the following as of Dec 31, 2020 continued: COMPREHENSIVE ADA TRANSACTIONS: 2021Do not enter $ or Canvas will mark wrong. (I will fix later)Using the information from 2020 for ABC Company and proceed into 2021.A) Accounts Receivable balance is $Update the TAccounts and answer the questions below. Label your entries with theappropriate transaction letter.B) Allowance for Doubtful Accounts (ADA) balance is $Use the 2021 transactions:C) Bad Debt Expense (BDE) balance is $5. $400,000 in credit sales6. $375,000 payment received on credit sales (collected from AR customers)7. Received $500 from the customer previously written off in #3 as a bankruptcysettlement.8. Wrote off a $1,500 receivable from NoCash Customer, who went into bankruptcy.9. At 12/31/21 ABC, Inc estimated 4% of its ending AR will be uncollectable.*** REQUIRED***Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA for the2021 transactions.Include your T Accounts in your PDF upload.*** REQUIRED***Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA for the2021 transactions.Include your T Accounts in your PDF upload.***REQUIRED**** answer the following as of Dec 31, 2021A) Accounts Receivable balance is $B) Allowance for Doubtful Accounts (ADA) balance is $C) Bad Debt Expense (BDE) balance is $

A ledger is a log or list of accounts that keep track of account transfers.

Using the information from 2020 for ABC Company and proceed into 2021. Update the TAccounts and answer the questions below. Label your entries with t appropriate transaction letter. Use the 2021 transactions: 5. $400,000 in credit sales 6. $375,000 payment received on credit sales (collected from AR customers) 7. Received $500 from the customer previously written off in #3 as a bankruptcy settlement. 8. Wrote off a $1,500 receivable from NoCash Customer, who went into bankrupt 9. At 12/31/21 ABC, Inc estimated 4% of its ending AR will be uncollectable. *** REQUIRED*** Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA for the

Using the information from 2020 for ABC Company and proceed into 2021. Update the TAccounts and answer the questions below. Label your entries with t appropriate transaction letter. Use the 2021 transactions: 5. $400,000 in credit sales 6. $375,000 payment received on credit sales (collected from AR customers) 7. Received $500 from the customer previously written off in #3 as a bankruptcy settlement. 8. Wrote off a $1,500 receivable from NoCash Customer, who went into bankrupt 9. At 12/31/21 ABC, Inc estimated 4% of its ending AR will be uncollectable. * REQUIRED* Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA for the

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EA: Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning...

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Using the following select financial statement information from Mover Supply Depot, compute the accounts receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Mover Supply Depot if the industry average is 4 times?
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
Suppose the amounts presented here are basic financial information (in millions) from the 2020 annual reports of Surf and Tide. Surf Tide Sales revenue $19,176.1 $10,381 Allowance for doubtful accounts, beginning 78.4 119 Allowance for doubtful accounts, ending 110.8 124 Accounts receivable balance (gross), beginning 2,873.7 1,743 Accounts receivable balance (gross), ending 2,994.7 1,553 Instructions a) Calculate the accounts receivable turnover and average collection period for both companies. My answer for (a) Surf Tide Net Accounts Receivable, beginning (Accounts receivable balance (gross), beginning-Allowance for doubtful accounts, beginning) (2,873.7-78.4) =2,795.3 (1,743-119) =1,624 Net Accounts Receivable, ending (Accounts receivable balance (gross), ending-Allowance for doubtful accounts, ending) (2994.7-110.8) =2,883.9 (1,553-124) =1,429 Average Net Accounts Receivable (Net Accounts Receivable, beginning+Net Accounts Receivable,…
The following data relate to accounts receivable of Ritsu Company for 2019: Accounts Receivable, Jan. 1 650,000 Credit Sales                                                                                        2,700,000 Sales Return                                                                                       75,000 Accounts Written Off 40,000 Collections from customers 2,150,000 Estimated future sales return at December 31 50,000 Estimated uncollectible accounts at 12/31 per aging 110,000 What amount should Ritsu report as net realizable value of accounts receivable on December 31, 2019?
The following is select financial statement information from Vortex Computing: Year Net Credit Sales Ending Accounts Receivable 2018 $1,557,200 $398,000 2019 $1,755,310 $444,400 2020 $1,865,170 $500,780 Compute the accounts receivable turnover ratios and the number of days’ sales in receivables ratios for 2019 and 2020 (round answers to two decimal places): 2019 Accounts Receivable Turnover =    ["", "", "", ""] times. 2019 Days' Sales in Receivables =    ["", "", "", ""] days. 2020 Accounts Receivable Turnover =    ["", "", "", ""] times. 2020 Days' Sales in Receivables =    ["", "", "", ""] days. What do the outcomes tell a potential investor about Vortex Computing, if 2020 industry average for accounts receivable turnover ratio is 4.00 times and days’ sales in receivables ratio is 91.25 days? It takes Vortex Computing    ["", "", ""] its competitors in the industry to collect on accounts receivable. If a lender were deciding between companies,…
The following is select financial statement information from Vortex Computing: Year Net Credit Sales Ending Accounts Receivable 2018 $1,557,200 $398,000 2019 $1,755,310 $444,400 2020 $1,865,170 $500,780 Compute the accounts receivable turnover ratios and the number of days’ sales in receivables ratios for 2019 and 2020 (round answers to two decimal places): 2019 Accounts Receivable Turnover =                          ["", "", "", ""]         times. 2019 Days' Sales in Receivables =                          ["", "", "", ""]         days. 2020 Accounts Receivable Turnover =                          ["", "", "", ""]         times. 2020 Days' Sales in Receivables =                          ["", "", "", ""]         days.
The following information is available for Reigen Company relating to 2019 operations: Accounts Receivable, January 1 4,000,000 Accounts receivable collected 8,400,000 Cash sales 2,000,000 Inventory, Jan. 1 4,800,000 Inventory, Dec. 31 4,400,000 Purchases 8,000,000 Gross Margin on Sales 4,200,000 What is the balance of accounts receivable on December 31, 2019?
The December 31, 2019 statement of financial position of Help Company included the following information: Notes receivable P 598,000 Less: NR discounted (380,000) P 218,000 Accounts receivable P2,240,000 Less: Allow. for D.A.( 141,000) 2,099,000 Total receivables P2,317,000 The following transactions occurred during 2020: 1. Sales on account P8,812,000 2. Collections on accounts 8,410,000 3. Accounts receivable written off as uncollectible 138,000 4. Notes receivable collected 290,000 5. Customer notes received in payment of accounts receivable 740,000 6. Notes receivable discounted paid at maturity 360,000 7. Notes receivable discounted defaulted, including interest of P200 and a P100 fee. This amount is expected to be collected in 2021 20,300 8. Proceeds from customer notes discounted (face value P450,000, accrued interest income, P2,000) 448,500 9. Collections on accounts previously written off 5,000 10. Sales returns and allowances 20,000 11. Required allowance for doubtful…
The December 31, 2019 statement of financial position of Help Company included the following information: Notes receivable P 598,000 Less: NR discounted (380,000) P 218,000 Accounts receivable P2,240,000 Less: Allow. for D.A.( 141,000) 2,099,000 Total receivables P2,317,000 The following transactions occurred during 2020: 1. Sales on account P8,812,000 2. Collections on accounts 8,410,000 3. Accounts receivable written off as uncollectible 138,000 4. Notes receivable collected 290,000 5. Customer notes received in payment of accounts receivable 740,000 6. Notes receivable discounted paid at maturity 360,000 7. Notes receivable discounted defaulted, including interest of P200 and a P100 fee. This amount is expected to be collected in 2021 20,300 8. Proceeds from customer notes discounted (face value P450,000, accrued interest income, P2,000) 448,500 9. Collections on accounts previously written off 5,000 10. Sales returns and allowances 20,000 11. Required allowance for doubtful…
The December 31, 2019 statement of financial position of Help Company included the following information: Notes receivable P 598,000 Less: NR discounted (380,000) P 218,000 Accounts receivable P2,240,000 Less: Allow. for D.A. ( 141,000) 2,099,000 Total receivables P2,317,000 The following transactions occurred during 2020: 1. Sales on account P8,812,000 2. Collections on accounts 8,410,000 3. Accounts receivable written off as uncollectible 138,000 4. Notes receivable collected 290,000 5. Customer notes received in payment of accounts receivable 740,000 6. Notes receivable discounted paid at maturity 360,000 7. Notes receivable discounted defaulted, including interest of P200 and a P100 fee. This amount is expected to be collected in 2021 20,300 8. Proceeds from customer notes discounted (face value P450,000, accrued interest income, P2,000)…
The December 31, 2019 statement of financial position of Help Company included the following information: Notes receivable P 598,000 Less: NR discounted (380,000) P 218,000 Accounts receivable P2,240,000 Less: Allow. for D.A.( 141,000) 2,099,000 Total receivables P2,317,000 The following transactions occurred during 2020: 1. Sales on account P8,812,000 2. Collections on accounts 8,410,000 3. Accounts receivable written off as uncollectible 138,000 4. Notes receivable collected 290,000 5. Customer notes received in payment of accounts receivable 740,000 6. Notes receivable discounted paid at maturity 360,000 7. Notes receivable discounted defaulted, including interest of P200 and a P100 fee. This amount is expected to be collected in 2021 20,300 8. Proceeds from customer notes discounted (face value P450,000, accrued interest income, P2,000) 448,500 9. Collections on accounts previously written off 5,000 10. Sales returns and allowances 20,000 11. Required allowance for doubtful…
The December 31, 2019 statement of financial position of Help Company included the following information: Notes receivable P 598,000 Less: NR discounted (380,000) P 218,000 Accounts receivable P2,240,000 Less: Allow. for D.A. ( 141,000) 2,099,000 Total receivables P2,317,000 The following transactions occurred during 2020: 1. Sales on account P8,812,000 2. Collections on accounts 8,410,000 3. Accounts receivable written off as uncollectible 138,000 4. Notes receivable collected 290,000 5. Customer notes received in payment of accounts receivable 740,000 6. Notes receivable discounted paid at maturity 360,000 7. Notes receivable discounted defaulted, including interest of P200 and a P100 fee. This amount is expected to be collected in 2021 20,300 8. Proceeds from customer notes discounted (face value P450,000, accrued interest income, P2,000)…