Aging the accounts rather than applying a percentage to the total accounts receivable should produce a more accurate allowance and bad debts expense when the aging of the accounts change. Each of the major types of receivables should be identified in the balance sheet or in the notes to the financial statements. Days to sell inventory. Elaine Davidson Explanation Ref. By regularly selling its accounts receivable, Suncor is able to more quickly convert receivables into cash. Accounting principles third canadian edition chapter 8 answers key free. Explanation Sales Return Sales.
Under the percentage of sales approach the amount estimated is the bad debts expense and this is the amount of the entry—no reference is made to the existing balance in the allowance. As well, the company may also not want to bother with the cost and effort required to bill and collect the receivables and would rather sell the receivables and let another company deal with these issues. EXERCISE 8-4 (a) (1). BYP 8-2 INTERPRETING FINANCIAL STATEMENTS (a) ($ in thousands). The write-off of an uncollectible account does not affect the current year's bad debts expense (debit the allowance and credit the accounts receivable). 9, 749 [($1, 139 + $627) ÷ 2] = 11. June 17 Accounts Receivable—EastCo [($5, 500 - $600) x 21% x 1/12]............ 20 Cash ($5, 500 - $600 + $86)................. Accounts Receivable—EastCo..... Accounting principles third canadian edition chapter 8 answers to worksheet. 6, 500 3, 200 3, 200. An account receivable does not incur interest unless the account is overdue. 17, 800 6, 300 6, 300. DR 1, 000 10, 000 9, 000 1, 850 1, 850. 04 times or 33 days (2005). Accounts Receivable......................... 12, 070 Interest Revenue............................ Bad debts expense............................. 26, 286 Allowance for Doubtful Accounts [($718, 970 x 3%) + $4, 717]............. 26, 286. 2007 # of Days Outstanding 0-30 days outstanding 31-60 days outstanding 61-90 days outstanding Over 90 days outstanding.
The reasons companies sometimes sell their receivables are: (1) For competitive reasons, sellers often must provide financing to purchasers of their goods for extended periods. A company may prefer a note receivable because it gives a stronger legal claim to assets and normally includes interest. 1 Cash [$9, 000 + $45]............................ 9, 045 Notes Receivable—Brooks Company Interest Revenue [$9, 000 x 6% x 1/12]....................... 9, 000 45. If there is hope of collection the payee can transfer the amount owing to an accounts receivable account. G) Bad Debts Expense ($1, 950, 000 x 1. Number of Days Outstanding 0-30 31-60 61-90 Over 90. 7 days and the increase in the turnover from 9. It is unearned revenue. Adjustment required............................................... Accounting principles third canadian edition chapter 8 answers.yahoo. $14, 700 48, 000 $33, 300. Brief Exercises Exercises. After Write-Off $469, 150. Interest is earned as time passes. Given in text Inventory turnover. PROBLEM 8-10B (Continued) (b) 2008 Receivables turnover: $6, 087.
D) Management of receivables has improved. Notes Receivable............................... 100, 000 Cash................................................ Cash.................................................... Interest Revenue............................ ($100, 000 x 5% x 3/12). 5/12 Total accrued interest. Interest revenue is included in Other Revenue on the income statement. 6 days + 135 days = 155. Principle of conservatism recommended that assets should be neither overstated nor understated. 385, 000 $220, 000 $100, 000. B) $37, 125 [($1, 650, 000 x 2. Bad Debts Expense.................................... 45, 665 Allowance for Doubtful Accounts......... [$43, 020 - ($22, 155 - $26, 000 + $1, 200)]. Bank credit card sales are cash sales. 25 Cash................................................ Credit Card Receivables........... 5, 400. Legal Notice Copyright. When bank credit card sales are made the bank will electronically deposit cash into the retail company's bank account. Net realizable value of accounts receivable and account for bad debts.
When a customer makes a purchase using a credit card you will have to pay a percentage of the sale to the credit card company. Determine missing amounts. 1, 2, 3, 4, 5, 6, 7, 8. It would appear that Forzani's is managing their inventory more efficiently which has resulted in the decrease in number of days to sell inventory and overall operating cycle. Cash.................................................... 11, 368 Sales Discount [($14, 000 - $2, 400) x 2%].................... 232 Accounts Receivable [$14, 000 - $2, 400]........................... 1, 550. An increase in the current ratio normally indicates an improvement in short-term liquidity. 8 days 365 ÷ 7 = 52. Current Ratio: 2004: $1, 710 ÷ $2, 259 = 0. Suncor's current ratio has improved from 0.
Answers to Natalie's questions 1. They have resulted from the sale of goods and/or services. The disadvantage of using an aging schedule (as compared to estimating uncollectible accounts as a percentage of total receivables) is it can be time consuming to gather the information if the accounting system that is being used does not calculate an aging of the accounts receivable. Re: Management of the credit function. Broadening Your Perspective. This has occurred because both accounts receivable and inventory have increased over the three year period and has resulted in the operating cycle weakening from 84. July 1 Cash.................................................... 9, 158 Notes Receivable........................... Interest Revenue [$9, 000 x 7% x 3/12]. In addition, consideration would have to be given as to whether the note should be written off. If Imagine Co. used 3% of accounts receivable rather than aging the accounts, the adjustment would be $21, 550 [($385, 000 x 3%) + $10, 000]. During the year Toys for Big Boys has experienced a significant increase in sales due to the efforts of the sales staff. All rights reserved. The balance rose from $6, 000 to $15, 600. 742, 500 546, 300 1, 288, 800 9, 170 1, 279, 630 592, 750 686, 880 12, 020 698, 900 639, 900 3, 450.
Aug. 10 No entry 31 Cash................................................. 25% x 1/12]............... Accounts Receivable.................. 1, 064 7 1, 057. By both debiting and crediting accounts receivable the customers subsidiary ledger account will be updated to show reversing the previous write-off and collecting the cash. July 25 Allowance for doubtful accounts...... Notes Receivable-Avery................ Sept. 1. Interest Receivable............................ ($100, 000 x 5% x 3/12). 6 = 48 days 50 + 48 = 98 days. BYP 8-1 FINANCIAL REPORTING PROBLEM (a) ($ in thousands). However, the company may have identified specific accounts that are doubtful, which may be the reason why the balance has not changed from year to year. Cost of Goods Sold......................... BRIEF EXERCISE 8-10 Note (a) Total Interest 1. June 12 Accounts Receivable–Worthy........... Allowance for Doubtful Accounts. EXERCISE 8-12 CN securitizes a large portion of its receivables to accelerate its cash receipts to provide it with a source of current financing.
Included in the notes to the financial statements will be the terms of the note, 5% due on July 1, 2012. Accounts Receivable $315, 000 90, 000 60, 000 35, 000 $500, 000% Estimated Uncollectible 1% 4% 10% 20%. Visa card: July 11. Credit Card Expense [$200 x 3%]...... Cash [$200 - $6].................................. EXERCISE 8-10 (a) Feb. 29 Bad debts expense............................. 35, 000 Allowance for Doubtful Accounts. 1 Notes Receivable–Opal...................... 12, 000 Accounts Receivable–Opal........... June 30 Interest Receivable [$12, 000 x 7% x 2/12].......................... Interest Revenue............................ 12, 000. Note: The Allowance for doubtful accounts is used assuming Lee Company uses only one allowance account for both accounts and notes receivable.
A separate account for interest receivable is used. 2 Prepaid expenses and deposits.................................. 26. Sales Returns and Allowances......... Accounts Receivable..................... 546, 300. 3) Billing and collection are often time-consuming and costly. 5% x 7/12 = $700 $40, 000 x 8. The most significant increase occurred in over 90 day balances where estimated uncollectibles rose from $9, 600 to $31, 200. B) $50, 000 [($2, 000, 000 x 2. This will also speed up the collection of cash. Selling receivables provides a more current source of cash to help finance operations. B) June 1 Accounts Receivable...................... 75% x 15/12 = $3, 291.
An account receivable is an informal promise to pay, while a note receivable is a written promise to pay. 1 days 365 ÷ 6 = 60.
Tip 7: Give a regular scalp massage and conditioning to strengthen your locs. The economic sanctions and trade restrictions that apply to your use of the Services are subject to change, so members should check sanctions resources regularly. However, this type of human hair dreadlock extensions only stays for a short time. For example, the blonde human hair dreadlocks hair extensions with the length of 12 inch is sold at the cost of $81. Pros and cons of human hair loc extensions. Vastdreads New Design Loc Coils Extensions 100% Human Hair Loose End Loc Extension With Curly Tips Textured Locs Private Label. They are available in a variety of sizes and lengths. Bought With Products. Also, we are prior to human hair dreadlock extensions and have been working with over 25 top dreadlock brands around the world. Tariff Act or related Acts concerning prohibiting the use of forced labor. Hold the hair with your forefinger, middle finger, and thumb. If yes, it can be sent by DHL within 24 hours, you can receive in 3. working days. Hard to maintain: As the human hair for loc extensions strands are easier to get dry, it is necessary to take care of the human hair loc extensions bundles regularly. Human Hair Type: Brazilian Hair.
My technician was impressed with the locs and my only suggestion is to make sure you deep condition before install as they are rather itchy or prickly in texture. You can minimize this risk by taking your time during installation and checking your locs for secureness from time to time. Pick up the most suitable Human Hair extensions for your hair. In addition, there are also models and fashionistas who put on human hair dreadlock extensions to mix with their clothes. We will only ask you for information necessary to make the purchase process faster and easier. Etsy has no authority or control over the independent decision-making of these providers. Interlocking and twisting are the two primary ways to do that. For longer locs, the extensions must be linked together. Vastdreads natural dreads locks loc hair extension 18 inch natural locks handmade dread lock hair extension dreadlocks. You can purchase the human hair extensions dreadlocks at a more reasonable cost by starting a cooperation with reliable wholesale hair vendors suppliers in your location. The market of human hair loc extensions. Loc extensions cut out all of the locking phases of natural locs, keeping you from experiencing the "journey" of it all. Because this is a permanent style, the installation is crucial.
Some give up on making or installing loc extensions because it takes time to get the crocheting technique right. If the thought of making loc extensions makes you cringe, don't worry. What Are Loc Extensions? Can I make the human hair loc extensions bundles at home? We welcome new and old customers from all walks of life to contact us for future business relationships and mutual success! It can last for more than 2 years.
0 piece (Min Order). Members are generally not permitted to list, buy, or sell items that originate from sanctioned areas. With the locs installed, you don't need to struggle every day to style your hair, curl and burn them or use hundreds of products; all you need is confidence. Human hair loc extensions: The overview about this hair product.
Separate and Twist Your Hair. Loc extensions require regular maintenance sessions to stay looking their best. Can I visit your factory? He is a serial hair blogger that has been writing about hair care since 2008, when he co-founded Curl Centric® and Natural Hair Box. We also have strict editorial integrity; here's an explanation of our editorial guidelines and how we make money. If you'd like to see a visual demonstration of the loc extension attachment process, watch the YouTube video above. Can I have a sample before I make a bulk order? This article will provide all the knowledge that you need to know about this product and how to make loc extensions with human hair. No unraveling worries – With natural locs, especially in the beginning, you must be careful with how you deal with your hair. Many get confused when differentiating between faux locs and loc extensions.
Leave at least a half-inch of hair unlocked. Are your locs handmade? Loc Extensions: Step by Step Instructions. Not every loc extension shop produces quality loc extensions. Improper installations usually produce heavy bulb-like extensions hanging from a smaller loc. Order now and get it around. Extremely long extensions can put too much stress on your roots. 4b 4c Afro Kinky Curly Natural Body Wave Wrap Around Pony Tail Brazilian Remy Clip In Drawstring Human Hair Ponytail Extension. Save yourself some time and frustration and gather your materials beforehand. Separate a section of the human hair. The texture of the hair is exactly like Afro hair, which is great for locking. Loc extensions come with their share of advantages and disadvantages, just like any other style. 8 cm) = 50 to 80 strands. Freeform human hair locs extensions: The last type of human hair dreadlock extensions hair is the freeform human hair locs extensions.
8cm, about 60-80 pieces. HOHOdreads factory provides wholesale price to the clients like salon stylist, online/offline store, brand owner and distributor. These locs look very much like natural dreadlocks, unlike faux locs, which may look artificial. It is easy to create loc extensions that are beautiful on day one, but the true quality of the work is revealed months later when your natural locs grow out. For these reasons, the base length of the loc extensions is about chin length. With proper processing of such extensions, you would get the desired natural-looking dreadlocks in no time. Note: Make sure not to crochet too close to the scalp, as this can cause scalp pain. They hold on to stuff. Are you a trading company or a factory? You can forego the many stages of loc maturation with loc extensions. If you'd like, you can twist the roots of your hair to make them look neater. Wholesale Russian Remy Hair Tape In Hair Extensions Double Drawn Tape In Extensions Human Tape Hair.
By using any of our Services, you agree to this policy and our Terms of Use. If you already have dreadlocks, the whole process of attaching extensions would be a lot easier since there is no need to install the base. The whole loc extensions are human hair. Short Styled High Top Dreads for Men. Push the hook in and pull it out repeatedly a few times.
They have free strands in the end for attachment to your hair. Clips or ponytail holders. There are only a handful of brands that produce hair just right for locking. The size of the extension must be determined according to the size that the natural loc will be.
Musical Instruments. You can part your hair randomly with your fingers if neatness is not important to you. Seller is extremely responsive and available to answer all questions and concerns. How long it takes for an order to get delivered after shipping out? Keep in mind that any buildup in your hair will eventually end up in your locs, so starting with clean hair is a must. Repeat the above steps to attach the rest of the locs. As your hair grows, the new growth is either retwisted or interlocked.