DR 1, 000 10, 000 9, 000 1, 850 1, 850. Ashley is not correct. Allowance for Doubtful Accounts............. 17, 800 Accounts Receivable............................. (d) Accounts Receivable................................. Allowance for Doubtful Accounts......... 6, 300. Accounting principles third canadian edition chapter 8 answers key. The percentage of sales approach is called the income statement approach because the calculation and the bad debts expense are based on a percentage of net credit sales; both are amounts that appear on the income statement. 75% x 1/12].............. Interest Revenue [$4, 800 x 6. As a result, it is often easier for a retailer to sell the receivable to another party who has expertise in billing and collection matters.
The most significant increase occurred in over 90 day balances. Tocksfor's receivables turnover ratio was a little lower in 2008, which means that Tocksfor was taking a little longer in 2008 in turning receivables into cash. In millions) Jan. 1, 2005 Accounts receivable Less: allowance Net realizable value. The number of days to sell inventory has decreased from 150. 8 Total assets.............................................................. $3, 972. Cash [$20, 000 - $3, 500 + $289].......... 16, 789 Accounts Receivable..................... 16, 789. Under the percentage of receivables approach, the balance in the allowance for doubtful accounts is derived either (a) by applying a percentage estimate of bad debts to total receivables or (b) from an analysis of individual customer accounts. EXERCISE 8-6 (Continued) (b). G) Bad Debts Expense ($1, 950, 000 x 1. B) The balance in the general ledger control account should agree with the total of the individual accounts in the subsidiary ledger. Accounting principles third canadian edition chapter 8 answers pdf. 7 Credit Cards Receivable........... 10, 11, 12, 13 13, 14, 15. Interest Receivable............................ ($100, 000 x 5% x 3/12). 18, 000 11, 500 Dr. 3, 500 8, 000 Dr. (d) Bad Debts Expense [($200, 500 x 6%) + $8, 000]......................... 20, 030 Allowance for Doubtful Accounts......... 20, 030.
75% x 2/12 = 71 Total $3, 251. 44, 000 [($800, 000 x 6%) - $4, 000]. 3) Billing and collection are often time-consuming and costly. 5/12 Total accrued interest. June 25 Cash.................................................... [$6, 000 x 6% x 1/12]. Bank credit card sales are cash sales. 0 (3) When an account previously written off is later collected, the original write-off is reversed and then the collection is recorded. Accounting principles third canadian edition chapter 8 answers.yahoo.com. Cash............................................................ 4, 429, 100 Accounts Receivable (c)....................... 4, 429, 100 ($845, 000 + $4, 550, 000 - $38, 400 - $927, 500 = $4, 429, 100). 26, 350 Sales Sales.
59, 700 15, 300 Dr. 30, 000 14, 700. July 1 Accounts Receivable......................... Interest Revenue [9, 000 x 7% x 3/12]. Balance before adjustment [see (b)]...................... Balance needed [$800, 000 x 6%]............................ The longer a customer takes to pay, the more likely that he will default on the receivable.
To keep financial statements relevant, IFRS allow assets to be revalued at some point after purchase in order to reflect fair market values. PROBLEM 8-9A (Continued) (d) OUELLETTE CO. Balance Sheet (partial) July 31, 2008 Assets Current assets Notes receivable......................................................... Accounts receivable................................................... Credit card receivables.............................................. Interest receivable...................................................... Total current assets............................................... $25, 000 4, 854 14, 115 481 $44, 450. 72, 500 (e) 45, 500 79, 600. The interest previously accrued on this note should be written off, as well as the note itself.
Notes Receivable............................... 100, 000 Cash................................................ Cash.................................................... Interest Revenue............................ ($100, 000 x 5% x 3/12). The bad debts expense reflects only the current year's estimates while the allowance is a result of estimates and write-offs over many years. EXERCISE 8-6 (a) 2007 Dec. 31 Bad Debts Expense [(2% x $450, 000) + $1, 000].................. 10, 000 Allowance for Doubtful Accounts. 17, 800 6, 300 6, 300. Positive working capital and a current ratio of greater than 1 is an indication that the company has good liquidity and will be more likely to be able to pay for the mixer.
Matching principle directs accountants to gather expenses related to the revenue recorded. Bad Debts Expense............................................ 22, 870 Allowance for Doubtful Accounts................ [($255, 250 x 8%) + $2, 450]. 41, 763 4, 717 Dr. 26, 286 21, 569. SOLUTIONS TO EXERCISES EXERCISE 8-1 Apr. This is evidenced by the decrease in the average collection period from 36. Sales...................................... 30 Accounts Receivable [$1, 000 - $38]............................. Credit Card Expense [$1, 000 x 3. June 12 Accounts Receivable–Worthy........... Allowance for Doubtful Accounts. Dec. 31 Bad Debts Expense [$19, 750 - $3, 000]................................ 16, 750 Allowance for Doubtful Accounts. Broadening Your Perspective. Included in the notes to the financial statements will be the terms of the note, 5% due on July 1, 2012. Total estimated uncollectible accounts. Cost of Goods Sold.........................
BYP 8-1 (Continued) (b). Note: The Allowance for doubtful accounts is used assuming Lee Company uses only one allowance account for both accounts and notes receivable. 2007 # of Days Outstanding 0-30 days outstanding 31-60 days outstanding 61-90 days outstanding Over 90 days outstanding. Included in other revenue on the income statement will be $2, 500 ($1, 250 + $1, 250) of interest revenue. Allowance for Doubtful Accounts..... 46, 480 Accounts Receivable..................... 46, 480. From the balance sheet perspective, the chief aim of adjusting entries is to accurately state assets, liabilities, and equity.
Although the outcome could be accomplished with one combined entry, it is best to have separate journal entries for the reversal and subsequent collection. In this case notes receivable due in three months would be disclosed first followed by net accounts receivables (accounts receivable less the allowance for doubtful accounts) and finally other receivables which would include sales taxes recoverable and income taxes receivable. Adjustment required............................................... $14, 700 48, 000 $33, 300. However, its current ratio is lower than the industry average of 1. The inventory turnover and days sales in inventory will provide additional information – the days sales in inventory will tell you how long, on average it takes for inventory to be sold. The Credit Card Expense and Debit Card Expense accounts are reported as operating expenses on the income statement. 5% x 3/12] 25 Notes Receivable—Avery.................. Accounts Receivable—Avery........ 6, 000.
DENVER — La Rumba, a Latin dance-focused nightclub that opened in the Golden Triangle neighborhood in 1997, will celebrate 25 years in business from Thursday, Nov. 10 to Saturday, Nov. 12, with a variety of offerings. Santa Claus has flown to Castle Rock to help light a 55-foot Christmas tree. Best Restaurants in Connecticut 2022.
Old Globe - Sheryl & Harvey White Theatre. — Food & drink reviews. FRISCO — Town of Frisco will host the 7th annual Girls on the Run 5K on Saturday, Nov. Veterans Day Parade. Saturday, Nov. m. - Canvas Stadium, Fort Collins. "Halloween End, " $1. Best Things to Do in Houston This Weekend: November 11-13, 2022 | 365 Houston. Sunshine Brooks Theatre. Cheryl Tall: Dramatis Personae. Diesel, A Bookstore. Sandy Spring Museum. — Matt Potter's undercover work. Back To Our Roots (African Dance). Stay up to date on Lehigh Valley tourism, events, and happenings.
Top Events This Week. DENVER — The a nnual Colorado Country Christmas Gift Show runs Friday, Nov. 13 at the Colorado Convention Center. Colorado Country Christmas Gift Show. Acoustic Music Series: Dan Moroz. The Queen's Ball: A Bridgerton Experience. Explore our offerings and find new reasons to visit San Antonio. Events & Festivals Happening in CLT | Charlotte's got a lot. RELATED: Who's playing Red Rocks in 2023? Click the links below to find out more. Find events from theater, dance performances and live music to festivals, comedy shows, tours and more. Nickel Plate Express. Chicago Magic Lounge. COLORADO, USA — It's beginning to look a lot like Christmas in Colorado this weekend. Celebrate the local culinary scene during VISIT DENVER's Denver Restaurant Week, March 3-12. — San Diego streets have style.
Grigorian-Gubenko Piano Duo. DENVER — Verdi's Italian masterpiece "Rigoletto" opens Opera Colorado's 40th Anniversary Season, featuring unforgettable music, including the effervescent "La donna è mobile. " Emily Wolfe and Big Mother Gig. From exhilarating exhibits at attractions like the Columbus Museum of Art or Franklin Park Conservatory, to major festivals that celebrate PRIDE and diversity, Columbus is sure to keep you entertained year-round. Events on March 12 - 18, 2023. Lewis Middle School. Note: all event information is accurate at the time of posting. — On stage in San Diego this week.
We know how to have fun year-round. Attendees can expect a day jam packed with feline fun including The Fantasy Felines dance Troupe, cat talks such as the History of Cat Deities, costume contests, cat trivia, art show, on-site adoptions and vendors. November 13 events near me florida. LOVELAND — America's largest dinosaur event Jurassic Quest returns to The Ranch Events Complex starting Friday, Nov. 11. North Coast Repertory Theatre, 987 Lomas Santa Fe Drive Solana Beach, CA. Demetri Martin: I Feel Funny Tour at House of Blues | Saturday, November 12 – A longtime Comedy Central fixture that has hosted his own program, Important Things with Demetri Martin, as well as taking on roles as a contributor for The Daily Show and as Ice Bear in the animated cartoon We Bare Bears, the deadpan comedian takes to Downtown's House of Blues for a night of his latest material. Bono - Stories of Surrender.
With so many amazing events throughout the year, there's always something special happening in Boulder, Colorado! Warwick's Bookstore. The event will offer one-stop shopping for those who crave must-have holiday crafts, beauty products, food and more. San Diego National Wildlife Refuge. Bourbon on Division.
Then, on Sunday, the Butcher's Ball kicks into gear with a day of competition where vistiors can sample tastings, enjoy demos and panel discussions, catch live music, shop a farmer's market and more. Winter - Celebrating Places to Dine and Drink in Connecticut. Be a part of culinary festivals, family attractions, seasonal celebrations and more! November 13 events near me donner. Have a super weekend! GLENDALE — The Chili, Booze, & Brews is a chili, booze and brews competition featuring unlimited samples from Colorado craft breweries, small-batch distilleries and local restaurants. Tango Fusion Group Dance Lessons for March 6:30 - Intermediate West Coast Swing 7:45 - Beginner and Intermediate Salsa/Bachata. Would you like to see your favorite Colorado festival, fair, expo, concert, drama, musical, ballet, run or event listed in 9Things?