Question

Avon Products, Inc., located in New York City is one of the world's largest producers of beauty and related products. The company's consolidated balance sheets for the 2015 and 2014 fiscal years included the following is in thousands) 2015 2014 Current assetsi Receivables, less allowances of $86,700 in 2015 and $106,9ee in 2014 5443,000 $515, cee A disclosure note accompanying the financial statements reported the following is in thousands Calculation of account recewables, net Receivables Less: allowance for doubtful accounts Les reserve for product returns Trade accounts receivable, net Year Ended 2015 2014 In thousands) $529,78 $622, sue (77.609) (9.1ee) 13.200) $441,00 $515. Assume that the company reported bad debt expense in 2015 of $144.100 and had products returned for credit totaling $6.300 Sales pricey Net sales for 2015 were $6,076,500 (all numbers in thousands) Required: 1. What is the amount of accounts receivable due from customers at the end of 2015 and 2014 2. What amount of accounts receivable did Avon write off during 2015? 3. What is the amount of Avon's cross sales for the 2015 fiscal year? Assuming that all sales are made on a credit basis, what is the amount of cash Avon collected from customers during the 2015 Complete this question by entering your answers in the tabs below ha nt of accounts receivable due from customers at the end of 2015 and 20147 (Enter your answers 2013 2014

Answer 1

Answer:

Requirements-1

The amount of Account receivable due from the customer at the end is 2015 value is 529700 and 2014 value is 622500.

Requirements-2

The amount of Account receivable did Avon written off during 2015 is (144100+93700-77600) =160200.

Requirements-3

The amount of avon's gross sales for the 2015 fiscal year (6076500+144100+6800)=6227400

Requirements-4

The amount of cash Avon collected from the customer during the 2015 for the fiscal year (622500+6227400+529700-160200)=7219400