Using Corney Company's accounts receivable disclosures and the following information, answer the questions below.
Using Corney Company's accounts receivable disclosures and the following information, answer the questions below.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 3MC: When a company receives a deposit from a customer to protect itself against nonpayment for future...
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Using Corney Company's accounts receivable disclosures and the following information, answer the questions below.
NOTE 1: Accounting Policies
Accounts Receivable
Accounts receivable consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for doubtful accounts and prompt payment discounts. Trade receivables do not bear interest. The allowance for doubtful
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NOTE 18
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SUPPLEMENTAL FINANCIAL STATEMENT DATA
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Consolidated Balance Sheet (millions)
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2019
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2018
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Trade receivables
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$800
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$1,500
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Allowance for doubtful accounts
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(5)
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(15)
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Refundable income taxes
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47
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63
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Other receivables
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151
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205
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Accounts receivable, net
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$993
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$1,753
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Allowance for doubtful accounts (millions)
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2019
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2018
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2017
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Balance at beginning of year
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$3
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$11
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$4
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Additions charged to expense
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3
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5
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5
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Doubtful accounts charged to reserve
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(1)
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(1)
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(5)
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Balance at end of year
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$5
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$15
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$4
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(in millions)
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2019
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2018
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Net sales
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$17,000
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$16,400
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Accounts receivable, net
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993
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1,753
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Total assets
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19,500
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18,995
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What is the percent of the allowance for uncollectible accounts to total trade receivables in 2019 and 2018? (Round the percentage to the nearest one thousandth percent, X.XXX%.)
The percent of the allowance to trade receivables is
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% in 2019 and
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% in 2018.
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What were Corney's write-offs of accounts receivable in
2019 and 2018? (Enter amounts in millions as provided to you in the problem statement, X.X.)
Corney's write-offs of accounts receivable were
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million in 2019 and
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million in 2018.
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