Homework Answers
Answer to Requirement a.
Cash collection from Accounts Receivable = Beginning Accounts
Receivable + Sales on account – Ending Accounts Receivable
Cash collection from Accounts Receivable during 2018 = $0 +
$350,000 - $63,000
Cash collection from Accounts Receivable during 2018 =
$287,000
Answer to Requirement b.
As per Question,
Uncollectible Accounts Expense = Sales on Account * 3%
Uncollectible Accounts Expense for 2018 = $350,000 * 3%
Uncollectible Accounts Expense for 2018 =
$10,500
Answer to Requirement c.
Net Realizable Value of Receivable, 2018 = Ending Accounts
Receivable, 2018 – Uncollectible Accounts Expense, 2018
Net Realizable Value of Receivable, 2018 = $63,000 - $10,500
Net Realizable Value of Receivable, 2018 =
$52,500
Answer to Requirement d.
Add Answer to:
During the first year of operation, 2018, Direct Service Co. recognized $350,000 of service revenue on...
During the first year of operation, 2018, McGinnis Appliance recognized $275,000 of service revenue on account....
During the first year of operation, 2018, McGinnis Appliance recognized $275,000 of service revenue on account. At the end of 2018. the accounts recevable balance was $55,300. Even though this is his first year in business, the owner believes he will collect all but about 3 percent of the ending balance. Required a. What amount of cash was collected by McGinnis during 2018? b. Assuming the use of an allowance system to account for uncollectible accounts, what amount should McGinnis...
During the first year of operation, 2018, Direct Service Co. recognized $320,000 of service revenue on account. At the...
During the first year of operation, 2018, Direct Service Co. recognized $320,000 of service revenue on account. At the end of 2018, the accounts receivable balance was $60,000. For this first year in business the owner believes uncollectible accounts expense will be about 3 percent of sales on account Required a. What amount of cash did Direct Service collect from accounts receivable during 2018? b. Assuming Direct Service uses the allowance method to account for uncollectible accounts, what amount should...
Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $68,000...
Roth Service Co. experienced the following transactions for
2018, its first year of operations:
Provided $68,000 of services on account.
Collected $38,500 cash from accounts receivable.
Paid $28,000 of salaries expense for the year.
Roth adjusted the accounts using the following information from
an accounts receivable aging schedule:
Number of Days Past Due
Amount
Percent Likely to Be Uncollectible
Allowance Balance
Current
$
15,400
0.01
0-30
5,400
0.05
31-60
3,900
0.10
61-90
1,100
0.30
Over 90 days
3,700
0.50
Required...
Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $72,000...
Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $72,000 of services on account. Collected $41,200 cash from accounts receivable. Paid $28,000 of salaries expense for the year. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 16,700 0.01 0-30 5,500 0.05 31-60 3,000 0.10 61-90 1,800 0.30 Over 90 days 3,800 0.50 Required...
During 2018, Hardy Merchandising Company purchased $17,000 of inventory on account. Hardy sold inventory on account...
During 2018, Hardy Merchandising Company purchased $17,000 of inventory on account. Hardy sold inventory on account that cost $12,800 for $19,100. Cash payments on accounts payable were $10,600. There was $17,000 cash collected from accounts receivable. Hardy also paid $3,700 cash for operating expenses. Assume that Hardy started the accounting period with $23,500 in both cash and common stock. Required a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity,...
Cordell Inc experienced the following events in 2018, its first year of operation 1. Received $58.000...
Cordell Inc experienced the following events in 2018, its first year of operation 1. Received $58.000 cash from the issue of common stock 2. Performed services on account for $80,000 3. Paid a $5,800 cash dividend to the stockholders. 4. Collected $64,000 of the accounts receivable 5. Paid $58.000 cash for other operating expenses 6. Performed services for $17.000 cash 7. Recognized $2,800 of accrued utilities expense at the end of the year. Required a. & c. Identify the events...
Roth Service Co. experienced the following transactions for 2018, its first year of operations 1. Provided...
Roth Service Co. experienced the following transactions for 2018, its first year of operations 1. Provided $74,000 of services on account 2 Collected $43,700 cash from accounts receivable. 3. Paid $26,000 of salaries expense for the year. 4. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $15,600 5,300 3,500 2,000 3,900 Percent Likely to Be Uncollectible 0.01 8.05 0.10...
Cordell Inc. experienced the following events in 2018, its first year of operation: 1. Received $56,000...
Cordell Inc. experienced the following events in 2018, its first year of operation: 1. Received $56,000 cash from the issue of common stock. 2. Performed services on account for $78,000. 3. Paid a $5,600 cash dividend to the stockholders. 4. Collected $62,000 of the accounts receivable. 5. Paid $56,000 cash for other operating expenses. 6. Performed services for $18,500 cash. 7. Recognized $2,600 of accrued utilities expense at the end of the year. Required a. & c. Identify the events...
one multi step problem! thank you Holmes Cleaning Service began operation on January 1, 2018. The...
one multi step problem! thank you
Holmes Cleaning Service began operation on January 1, 2018. The company experienced the following events for its first year of operations Events Affecting 2018 1. Provided $220,000 of cleaning services on account 2. Collected $165.000 cash from accounts receivable 3. Paid salaries of $34,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,400. The expense was determined using the percent of revenue method. Required a....
Cordell Inc. experienced the following events in 2018, its first year of operation: Received $46,000 cash...
Cordell Inc. experienced the following events in 2018, its first
year of operation:
Received $46,000 cash from the issue of common stock.
Performed services on account for $74,000.
Paid a $4,600 cash dividend to the stockholders.
Collected $52,000 of the accounts receivable.
Paid $46,000 cash for other operating expenses.
Performed services for $15,000 cash.
Recognized $1,600 of accrued utilities expense at the end of the
year.
Required
a. & c. Identify the events that result in
revenue or expense recognition...
During the first year of operation, 2018, McGinnis Appliance recognized $275,000 of service revenue on account. At the end of 2018. the accounts recevable balance was $55,300. Even though this is his first year in business, the owner believes he will collect all but about 3 percent of the ending balance. Required a. What amount of cash was collected by McGinnis during 2018? b. Assuming the use of an allowance system to account for uncollectible accounts, what amount should McGinnis...
During the first year of operation, 2018, Direct Service Co. recognized $320,000 of service revenue on account. At the end of 2018, the accounts receivable balance was $60,000. For this first year in business the owner believes uncollectible accounts expense will be about 3 percent of sales on account Required a. What amount of cash did Direct Service collect from accounts receivable during 2018? b. Assuming Direct Service uses the allowance method to account for uncollectible accounts, what amount should...
Roth Service Co. experienced the following transactions for
2018, its first year of operations:
Provided $68,000 of services on account.
Collected $38,500 cash from accounts receivable.
Paid $28,000 of salaries expense for the year.
Roth adjusted the accounts using the following information from
an accounts receivable aging schedule:
Number of Days Past Due
Amount
Percent Likely to Be Uncollectible
Allowance Balance
Current
$
15,400
0.01
0-30
5,400
0.05
31-60
3,900
0.10
61-90
1,100
0.30
Over 90 days
3,700
0.50
Required...
During 2018, Hardy Merchandising Company purchased $17,000 of inventory on account. Hardy sold inventory on account that cost $12,800 for $19,100. Cash payments on accounts payable were $10,600. There was $17,000 cash collected from accounts receivable. Hardy also paid $3,700 cash for operating expenses. Assume that Hardy started the accounting period with $23,500 in both cash and common stock. Required a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity,...
Cordell Inc experienced the following events in 2018, its first year of operation 1. Received $58.000 cash from the issue of common stock 2. Performed services on account for $80,000 3. Paid a $5,800 cash dividend to the stockholders. 4. Collected $64,000 of the accounts receivable 5. Paid $58.000 cash for other operating expenses 6. Performed services for $17.000 cash 7. Recognized $2,800 of accrued utilities expense at the end of the year. Required a. & c. Identify the events...
Roth Service Co. experienced the following transactions for 2018, its first year of operations 1. Provided $74,000 of services on account 2 Collected $43,700 cash from accounts receivable. 3. Paid $26,000 of salaries expense for the year. 4. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $15,600 5,300 3,500 2,000 3,900 Percent Likely to Be Uncollectible 0.01 8.05 0.10...
Cordell Inc. experienced the following events in 2018, its first year of operation: 1. Received $56,000 cash from the issue of common stock. 2. Performed services on account for $78,000. 3. Paid a $5,600 cash dividend to the stockholders. 4. Collected $62,000 of the accounts receivable. 5. Paid $56,000 cash for other operating expenses. 6. Performed services for $18,500 cash. 7. Recognized $2,600 of accrued utilities expense at the end of the year. Required a. & c. Identify the events...
one multi step problem! thank you
Holmes Cleaning Service began operation on January 1, 2018. The company experienced the following events for its first year of operations Events Affecting 2018 1. Provided $220,000 of cleaning services on account 2. Collected $165.000 cash from accounts receivable 3. Paid salaries of $34,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,400. The expense was determined using the percent of revenue method. Required a....
Cordell Inc. experienced the following events in 2018, its first
year of operation:
Received $46,000 cash from the issue of common stock.
Performed services on account for $74,000.
Paid a $4,600 cash dividend to the stockholders.
Collected $52,000 of the accounts receivable.
Paid $46,000 cash for other operating expenses.
Performed services for $15,000 cash.
Recognized $1,600 of accrued utilities expense at the end of the
year.
Required
a. & c. Identify the events that result in
revenue or expense recognition...
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