data in the first quarter of 2018: Accounts receivable, beginning Accounts receivable, ending Trade payable-purchases, beg Trade payable-purchases, end Cash Purchases at list price 12,500.00 8,000.00 4,000.00 6,500.00 40,000.00 (Trade discounts given: 10%;20%) Purchase discount not taken from Cash Purchases 1,000.00 36,300.00 9,500.00 Payments to Trade Suppliers Beginning Inventory Inventory decreased by- Operating expenses paid 2,800.00 18,700.00 Gross Profit rate is 30% based on cost What is the percentage tax due? 9. Based on number 8, ASSUMING that SAN JOSE is a service provider, what will be percentage tax due?

data in the first quarter of 2018: Accounts receivable, beginning Accounts receivable, ending Trade payable-purchases, beg Trade payable-purchases, end Cash Purchases at list price 12,500.00 8,000.00 4,000.00 6,500.00 40,000.00 (Trade discounts given: 10%;20%) Purchase discount not taken from Cash Purchases 1,000.00 36,300.00 9,500.00 Payments to Trade Suppliers Beginning Inventory Inventory decreased by- Operating expenses paid 2,800.00 18,700.00 Gross Profit rate is 30% based on cost What is the percentage tax due? 9. Based on number 8, ASSUMING that SAN JOSE is a service provider, what will be percentage tax due?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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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…
42.The following data were available for ABC Company, which uses perpetual system, at Dec 31, 20X2:Accounts Payable, beg P15,000Accounts Payable, end P10,000Inventory, beg P17,000Inventory, end P9,000Cash payment to creditors(net of 2% discount) 294,000Purchase returns, P5,000How much were the credit purchases during the period? 285,000 294,000 300,000 315,000
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)…
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)…
Choose the letter of answer and solution A company reports the following data relative to accounts receivable: Average accounts receivable of P400,000.00 and P416,000.00 in FYs 2021 and 2020, respectively; and Net Credit Sales of P2,600,000.00 and P3,100,000.00 in FYs 2021 and 2020, respectively. The term of sale are net 30 days. Compute the accounts receivable turnover and the collection period in FY 2021. * a. 6.5 times and 56.2 daysb. 7.45 times and 49 daysc. 7.5 times and 56.2 daysd. 6.5 times and 49 days
Required: Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit sales are estimated to be uncollectible. Using the percentage of sales method:Determine the amount to be charged to the uncollectible expense account.Prepare the Allowance for uncollectible account. Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31 Journal Entries Date Particulars Debit($) Credit($) 10.1.20 Accounts Receivable 11000 To sales 11000 15.5.20 Allowance for uncollectible accounts(2500+400) 2900 To accounts receivable 2900 4.8.20 Cash(70% of 11000) 7700 Allowance for uncollectible accounts(30% of $11000) 3300 To Accounts Receivable 1100 26.10.20 Accounts Receivable(30% of $400) 120 To allowance for uncollectible accounts 120 26.10.20 Cash 120 To accounts receivable 120…
Princeton's detailed age analysis of trade receivables at 31 December 2020 shows the following: Customername Totaloutstanding £ Creditlimit £ 0-30days £ 31-60days £ 61-90days £ Over 90days £ A. Ames 16200 15000 2000 8700 2500 3000 B.Bristow 18300 25000 18300 - - - C.Chen 4700 4800 - 2000 2700 - TOTAL 39200 - 20300 10700 5200 3000 Notes:• The company offers 30 days credit to its customers.• The credit is offered to the customers based on words of mouth• Ames is disputing the quality of some of the goods and refusing to pay, no decision hasbeen made yet (£3,000 over 90 days)• Chen has just put in an order for £5,000, he is a good friend of the directorRequired:What are the key points arising from the credit controller's review in respect of each tradereceivable balance and what suggestions can be made to improve the aged analysis report?
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.
Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit sales are estimated to be uncollectible. Using the percentage of sales method: Determine the amount to be charged to the uncollectible expense account. Prepare the Allowance for uncollectible account. Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31.