Retro reported the following transactions for the month of December. The company uses a perpetual inventory system and owned 10,000 units of inventory on December 1. Dec. (a) 1 Received $315.000 on account from a major customer. Paid $14,000 in rent for the month of December. Paid $375,000 owing to a supplier from a purchase made in November. Sold 4,200 units of merchandise to a Canadian furniture retailer for $2,121,000 on credit. FOB shipping point. Purchased 6,000 units of merchandise from a supplier at a cost of $290 per unit on credit, FOB shipping point. Paid salaries of $125,000. Sold 8,000 units of merchandise for $4,092.000 on account, FOB shipping point. Paid $32,000 for advertising expenses incurred in the month. Purchased 5,000 units of inventory from a supplier at a cost of $300 per unit on credit, FOB shipping point. 1 4 6 15 18 21 24 27 Record the December transactions. The company uses the FIFO cost formula. (List all debit entries before credit entries. Credit account titlar are automatically indented when the amount is entered Do not indent manuals If no entrs ir required select "No Entre for

Retro reported the following transactions for the month of December. The company uses a perpetual inventory system and owned 10,000 units of inventory on December 1. Dec. (a) 1 Received $315.000 on account from a major customer. Paid $14,000 in rent for the month of December. Paid $375,000 owing to a supplier from a purchase made in November. Sold 4,200 units of merchandise to a Canadian furniture retailer for $2,121,000 on credit. FOB shipping point. Purchased 6,000 units of merchandise from a supplier at a cost of $290 per unit on credit, FOB shipping point. Paid salaries of $125,000. Sold 8,000 units of merchandise for $4,092.000 on account, FOB shipping point. Paid $32,000 for advertising expenses incurred in the month. Purchased 5,000 units of inventory from a supplier at a cost of $300 per unit on credit, FOB shipping point. 1 4 6 15 18 21 24 27 Record the December transactions. The company uses the FIFO cost formula. (List all debit entries before credit entries. Credit account titlar are automatically indented when the amount is entered Do not indent manuals If no entrs ir required select "No Entre for

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 65E: Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared...

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Review the select information for Liquor Plaza and Beer Buddies (industry competitors) and complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places.
Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places.
The trial balance and additional information given below was obtained from the records of Vancouver Traders on 28 February 2020, the end of the financial year.REQUIREDUse the trial balance, adjustments and additional information to prepare the Income statement for the year ended 28 February 2020 Vancouver TradersPRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2020Balance sheet accounts sectionDebitCreditCapital1 300 000Drawings96 000Land and Buildings912 000Vehicles at Cost672 000Equipment at Cost480 000Accumulated Depreciation on Vehicles384 000Accumulated Depreciation on Equipment168 800Fixed deposit: Fin Bank (9% p.a.)144 000Trading inventory123 000Debtors control142 420Provision for Bad Debts7 200Bank59 944Cash Float7 200Creditors Control133 344Mortgage Loan Fin Bank (12%)240 000Nominal Accounts SectionSales1 510 320Cost of sales432 000Sales returns9 600Salaries and wages427 200Bad debts13 400Stationery21 800Rates and Taxes57 100Motor expenses96 000 Repairs to building17 200Telephone32…
The following information is taken from the 2015 annual report to shareholders of Herme-Finnet (HF) Company. For Fiscal 2015 For Fiscal 2014 $ 57 million $36 million Provision for doubtful accounts Accounts receivable, net Accounts receivable, gross Beginning Balance At Fiscal Year- end 2015 13,473 million 13,673 million Using a T-account for the allowance for doubtful accounts, identify the changes in the account during fiscal year 2015. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Ending Balance At Fiscal Year-end 2014 13,942 million 14, 185 million Allowance for Doubtful Accounts
Here is the operating data for Yalis Cleaning, Inc.: After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue as the base amount. Round percentages to two decimal places.
FINANCIAL RATIO: Requirement: Compute for the following financial ratios for the year 2021 (round-off answers to two decimal places) f. Accounts receivable turnover (assume all sales are on credit) g. Days of receivable (use 365 days) h. Debt ratio i. Equity ratio j. Debt-to-equity ratio k. Gross profit ratio 1. Net profit ratio m. Return on assets n. Return on equity
The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Required: 1. Record the January 1 credit balance of $25,685 in a T-account for Allowance for Doubtful Accounts. 2.A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of ¼ of 1% of the net sales of $17,710,000 for the year, determine the following: A. Bad debt expense for the year. B. Balance in the allowance account after the adjustment of…
On December 31, 2021, Timberwolves Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries: \table[[Accounts receivable, 25,000), Allowance for doubtful accounts, 20 D], [Sales revenue (all credit sales),400,000]] credit balance REQUIRED: Prepare the necessary journal entries for each of the following independent assumptions: A An account was recognized as a had debt in July. Amount is $350 B At December 31 an aging of accounts receivable is completed. It is estimated that $2,150 of the receivables outstanding at year-end will be uncollectible. C Assume the same information presented in part 8. except that prior to adjustment, the allowance for doubtful accounts had a debit balance of $200 rather than a credit balance of $200. D At December 31 it is estimated that a provision for bad debts is required for 1% of credit sales for the year.
FINANCIAL RATIO: Requirement: Compute for the following financial ratios for the year 2021 (round-off answers to two decimal places) a. Current ratio b. Quick (Acid-test) ratio c. Working capital d. Inventory turnover e. Days of inventory (use 365 days) f. Accounts receivable turnover (assume all sales are on credit) g. Days of receivable (use 365 days) h. Debt ratio i. Equity ratio j. Debt-to-equity ratio k. Gross profit ratio 1. Net profit ratio m. Return on assets n. Return on equity
Alex is currently considering to invest his money in one of the companies betweenCompany A and Company B. The summarized final accounts of the companies for theirlast completed financial year are as follows: (refer to the images) Required:a. Calculate the following ratios for Company A and Company B. State clearly theformulae used for each ratio:i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)v. Payables Payment Period (days)vi. Current Ratiovii. Quick Ratiob. Comment on each of the ratios calculated in part (a) above.
The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020: Accounts Receivable (debit balance)................................................. $1,240,250 Allowance for Doubtful Accounts (credit balance)....................................... 19,220 The following transactions are for the year 2020: Sales for the year were $8,100,000, of which 60% was on credit, and sales returns, all on credit, were $146,000. Cash collections, excluding recoveries, were $5,416,000. Jetson wrote off $62,500 in receivables, of which half was later recovered and collected. The company’s credit and collection manager has estimated that 6% of outstanding accounts receivable are uncollectible. Required: Calculate the bad debt expense for the year and record the appropriate journal entry.
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?