Blossom Inc's general ledger at April 30, 2021, included the following: Cash $4.000: Supplies $300: Equipment $20,000; Accounts Payable $2,100, Deferred Revenue (from gift certificates) $1.000; Bank Loan Payable $10,000; Common Shares $5.000; and Retained Earnings S6,200. The following transactions occurred during May: May Paid rent for the month of May, $1.000. Paid $1.100 of the account payable outstanding at April 30. Issued gift certificates for future services for $1.500 cash. Received $2.000 from customers for services performed to date. Paid $1.200 in salaries to employees. Customers receiving services worth $700 used gift certificates in paymeht. 15 15 17 18 Paid the remaining accounts payable from April 30, 22 Purchased supplies of $700 on account. 24 Received a bill for advertising for $500. This bill is due on June 22. Received and paid a utilities bill for $400, Received $2.100 from customers for services performed. Customers receiving services worth $600 used gift certificates in payment. Interest of $50 was paid on the bank loan. Paid $1,200 in salaries to employees. 25 28 29 30 31 31 Paid income tax instalment for the month, $150.

Blossom Inc's general ledger at April 30, 2021, included the following: Cash $4.000: Supplies $300: Equipment $20,000; Accounts Payable $2,100, Deferred Revenue (from gift certificates) $1.000; Bank Loan Payable $10,000; Common Shares $5.000; and Retained Earnings S6,200. The following transactions occurred during May: May Paid rent for the month of May, $1.000. Paid $1.100 of the account payable outstanding at April 30. Issued gift certificates for future services for $1.500 cash. Received $2.000 from customers for services performed to date. Paid $1.200 in salaries to employees. Customers receiving services worth $700 used gift certificates in paymeht. 15 15 17 18 Paid the remaining accounts payable from April 30, 22 Purchased supplies of $700 on account. 24 Received a bill for advertising for $500. This bill is due on June 22. Received and paid a utilities bill for $400, Received $2.100 from customers for services performed. Customers receiving services worth $600 used gift certificates in payment. Interest of $50 was paid on the bank loan. Paid $1,200 in salaries to employees. 25 28 29 30 31 31 Paid income tax instalment for the month, $150.

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

See similar textbooks

Similar questions

Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
The following information is available for Reigen Company relating to 2019 operations: Accounts Receivable, January 1 4,000,000 Accounts receivable collected 8,400,000 Cash sales 2,000,000 Inventory, Jan. 1 4,800,000 Inventory, Dec. 31 4,400,000 Purchases 8,000,000 Gross Margin on Sales 4,200,000 What is the balance of accounts receivable on December 31, 2019?
On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit $ 59,000 25,600 Cash Accounts Receivable Allowance for Uncollectible Accounts $ 2,500 Inventory Notes Receivable (5%, due in 2 years) 36,600 15,600 Land 158,000 Accounts Payable 15,100 223,000 Common Stock Retained Earnings 54,200 $294,800 Totals $294,800 During January 2021, the following transactions occur: January 1 Purchase equipment for $19,800. The company estimates a residual value of $1,800 and a six-year service life. January 4 Pay cash on accounts payable, $9,800. January 8 Purchase additional inventory on account, $85,900. January 15 Receive cash on accounts receivable, $22,30O. January 19 Pay cash for salaries, $30,100. January 28 Pay cash for January utilities, $16,800. January 30 Sales for January total $223,000. All of these sales are on account. The cost of the units sold is $116,500. Information for adjusting entries: a. Depreciation on the equipment…
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $360,000: allowance for uncollectible accounts at the beginning, $30,000, credit sales during the year, $1,800,000; accounts receivable written off during the year $19,200; cash collections from customers; $1,740,000. the company estimates that the required year-end balance in the allowance for uncollectible accounts should be $40,080. What is the year-end gross and net accounts receivable balance?
On January 1, 2021, the general ledger of Big Blst Fireworks includes the following account balances: Debit $ 23, 300 Accounts Credit Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (6%, due in 3 years) 48, e00 $ 4, 580 37,e00 72,100 28,900 37,8ee 63,0ne 39,eee Common Stack Retained Earnings Totals $172, 488 $172,480 The $37,000 beginning balance of inventory consists of 370 units, esch costing $100. During Janusry 2021, Big Blest Fireworks had the following inventory transactions: January 3 Purchase 1,688 units for $168,888 on account ($18s each). January 8 Purchase 1,78e units for $187, 800 on account ($118 cach). January 12 Purchase 1,88e units for $287, e00 on account ($115 cach). January 15 Return 135 of the units purchased on January 12 because of defects. January 19 Sell 5,2ee units on account for $788,eee. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753, eee…
The following information relates to Charleston Co.'s accounts receivable for 2021: Accounts receivable balance, 1/1/2021 $ 840,000 Credit sales for 2021 3,300,000 Accounts receivable written off during 2021 70,000 Collections from customers during 2021 3,100,000 Allowance for uncollectible accounts balance, 12/31/2021 210,000 What amount should Halloran report for accounts receivable, before allowances, at December 31, 2021?
The general ledger of Pop's Fireworks includes the following account balances in 2021: Accounts Debit Credit Cash $ 22,800 Accounts Receivable 45,500 Allowance for Uncollectible Accounts $ 3,800 Supplies 9,100 Notes Receivable (8%, due in 2 years) 26,000 Land 93,000 Accounts Payable 13,900 Common Stock 138,000 Retained Earnings 30,700 Service Revenue 126,400 Salaries Expense 71,700 Utilities Expense 26,600 Supplies Expense 18,100 Totals $ 312,800 $ 312,800 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June 3 Provide additional services on account for $15,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account.…
The general ledger of Pop's Fireworks includes the following account balances in 2021: Accounts Debit Credit Cash $ 22,800 Accounts Receivable 45,500 Allowance for Uncollectible Accounts $ 3,800 Supplies 9,100 Notes Receivable (8%, due in 2 years) 26,000 Land 93,000 Accounts Payable 13,900 Common Stock 138,000 Retained Earnings 30,700 Service Revenue 126,400 Salaries Expense 71,700 Utilities Expense 26,600 Supplies Expense 18,100 Totals $ 312,800 $ 312,800 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June 3 Provide additional services on account for $15,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account.…
The general ledger of Pop's Fireworks includes the following account balances in 2021: Accounts Debit Credit Cash $ 22,800 Accounts Receivable 45,500 Allowance for Uncollectible Accounts $ 3,800 Supplies 9,100 Notes Receivable (8%, due in 2 years) 26,000 Land 93,000 Accounts Payable 13,900 Common Stock 138,000 Retained Earnings 30,700 Service Revenue 126,400 Salaries Expense 71,700 Utilities Expense 26,600 Supplies Expense 18,100 Totals $ 312,800 $ 312,800 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June 3 Provide additional services on account for $15,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account.…
ABC Corporation began 2019 with an accounts receivable balance of $56,921. During 2019, ABC had sales revenue of $207,500: $35,000 of that was cash sales and $172,500 of that was credit sales. ABC wrote off $10,000 of uncollectible accounts and had payments on account of $180,000 Create a T-account for Accounts Receivable. Post the relevant information from above and calculate ABC Corporation’s Accounts Receivable balance at 12/31/19.