Assume that 5% is imposed as Bad Debts for the Accounts Receivable of P5,000,000: Company Policy. Average Days 20% Less than 30 days......... 31 days to 60 days......... 61 days to 90 days......... Over 90 days .25% .35% .15% How much is the Daily Sales Outstanding? 24.50 days 58 days 62 days 245 days 20 55 70 100

Assume that 5% is imposed as Bad Debts for the Accounts Receivable of P5,000,000: Company Policy. Average Days 20% Less than 30 days......... 31 days to 60 days......... 61 days to 90 days......... Over 90 days .25% .35% .15% How much is the Daily Sales Outstanding? 24.50 days 58 days 62 days 245 days 20 55 70 100

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8MC: Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of...

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Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of $134,000. Conner uses the balance sheet method to report bad debt estimation. The estimation percentage is 4.6%. What is the estimated balance uncollectible using the balance sheet method? A. $26,082 B. $6,164 C. $260,820 D. $61,640
Net sales for the month are W800,000,000 and bad debts are expected to be 1.5% of net sales. What would be the net Accounts receivable on the balance sheet? A. W800,000,000. B. W78,800,000 C. W12,000,000. d D. W31,000,000 O O
A firm has total annual sales (all credit) of P1,200,000 and accounts receivable of P500,000. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to P300,000? choose the letter of the correct answera. 51.3 daysb. 61.3 daysc. 71.3 daysd. 81.3 dayse. 91.3 days
9. Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the production during the current month. The standard price for these raw materials is $5.2 per unit. How much is the materials price variance for the current month if Company S analyzes the variance at the point of purchase? O $200 favorable O $200 unfavorable O $700 favorable O $700 unfavorable 10. T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019 the corporation has 350,000 common stock issued and outstanding. On February 14, 2020, the market price of the stock is $17. On the same date, T Corporation acquired 50,000 stocks at $15. On March 5, 2020, the company reissued 25% of the treasury stocks at $20. Which of the following will be included in the entry to record the transaction on March 5, 2020? Debit Treasury Shares $187,500 Debit Common Stock $250,000 O Credit Additional Paid-in Capital $62,500 O Credit Cash $250,000
A. Assume that all sales are on account. If sales revenue was $18,000,000 and the average days in accounts receivable was 38 days for the last operating year, what would the average accounts receivable balance have been? a. $1,680,000 b. $1,500,000 c. $1,875,000 d. $18,000,000 B. If accounts receivable is projected to be $800,000 at the beginning of the next operating year and $1,100,000 at the end of the next operating year: would cash be generated by accounts receivable or needed to fund accounts receivable? And, by how much? a. $300,000 of cash needed to fund accounts receivable b. $1,100,000 of cash needed to fund accounts receivable c. $500,000 of cash needed to fund accounts receivable d. $300,000 of cash generated by accounts receivable
7. Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as outstanding accounts receivable if Company Z has a total sale of $1,800,000 of which $200,000 are cash sales and the beginning and ending accounts receivable balances are $30,000 and $50,000, respectively. 11.40 days O 9.13 days 6.84 days 8.11 days
6 Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable. The company has the following data for the year: Allowance for Bad Debts, 12/31/19 - credit balance Sales including cash sales Accounts written off as uncollectible during 2020 Cash Sales P 28,000 5,000,000 23,000 500,000 3,500,000 270,000 5,000 Collections from credit sales Accounts Receivable at 1/1/20 unadjusted Uncollectible accounts recovery during 2020 What is Nissan's Accounts Receivable (net of allowance) that shall be presented in its 2020 statement of financial position?
A company uses the percent of sales method to estimate bad debts expense. A company expects for 5% of total sales to go unpaid. The balance in the sales account and the allowance for doubtful accounts is equal to $100,000 and $3,000 (credit), respectively. How much in bad debt expense should be recognized as of the end of the year? O a. $2,000 b. $5,000 Oc. $3,000 Od. $8,000
7 Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable. The company has the following data for the year: Allowance for Bad Debts, 12/31/19 - credit balance Sales including cash sales Accounts written off as uncollectible during 2020 Cash Sales P 28,000 5,000,000 23,000 500,000 3,500,000 270,000 5,000 Collections from credit sales Accounts Receivable at 1/1/20 Uncollectible accounts recovery during 2020 What is Nissan's bad debts expense that shall be presented in its 2020 statement of financial performance?
Related data of J Company: Accounts Receivable, Beginning 395,200 Allowance for Bad debts, beg. 8,500 Sales for the year. 5,000,000 Collection. 4,680,000 Percentage of Bad debts is 2% of Accounts Receivable How much is the net realizable value?
16. Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net credit sales, P2,000,000 Accounts receivable, December 31, P310,000 Allowance for doubtful accounts (before any year-end adjustments), P17,000 Percentage of credit sales 2% The aging of receivables is as follows: (days outstanding, receivable balances, and % uncollectible, respectively) 0-60 days, P90,000, 2% 61-120 days, P100,000, 3% Over 120 days, P120,000, 15% Q Company uses the percentage of credit sales in determining the bad debts monthly financial statements and aging of receivables for its annual financial statements. Accounts written off during the year amounted to P38,000 and accounts recovered amounted to P9,000. As of December 31, Q determined that P20,000 accounts receivable from a certain customer included in the “61-120 days outstanding group” is 94% collectible and P10,000 account included in the “over 120 days outstanding” group is worthless and needs to be written…
16. Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net credit sales, P2,000,000 Accounts receivable, December 31, P310,000 Allowance for doubtful accounts (before any year-end adjustments), P17,000 Percentage of credit sales 2% The aging of receivables is as follows: (days outstanding, receivable balances, and % uncollectible, respectively) 0-60 days, P90,000, 2% 61-120 days, P100,000, 3% Over 120 days, P120,000, 15% Q Company uses the percentage of credit sales in determining the bad debts monthly financial statements and aging of receivables for its annual financial statements. Accounts written off during the year amounted to P38,000 and accounts recovered amounted to P9,000. As of December 31, Q determined that P20,000 accounts receivable from a certain customer included in the “61-120 days outstanding group” is 94% collectible and P10,000 account included in the “over 120 days outstanding” group is worthless and needs to be written…