Question

T ulis, Inc. (LUX-4, 7-51 McConnell 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 assets: Receivables, less allowances of $23,471 in 2015 and $25,794 in 2014 $340, 21e $759, erences A disclosure note accompanying the financial statements reported the following in thousands) Calculation of account receivables, ne Receivables Loss allowance for doubtful accounts Lossi reserve for product returns Trade accounts receivable, net: Year Ended 2015 2014 (In thousands) 5863,681 $785,504 (9,103) (9,155) (14368) (16,639) Assume that the company reported bad debt expense in 2015 of $3100 and had products returned for credit tot price). Net sales for 2015 were $6.229,800 (all numbers in thousands) 2195 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 McConnell write off during 2015 3. What is the amount of McConnell's gross sales for the 2015 fiscal year? Assuming that all sales are made on a credit basis, what is the amount of cash McConnel collected from customers during the 2015 fiscal year? aloers during the Complete this question by entering your answers in the tabs below. Req1 R eg 2 to 4 What amount of accounts receivable did McConnell write alt during 20257 What is the amount of McCannes grasses the 2015 Tiscal year? Assuming that all sales are made on a credit basis, what is the amount of cash McConnell Collector customers during the 2015 fiscal year? (Enter your answer in thousands) 2 13 4 Accounts receive weats Gross sales Cash Colection 3,152 6.231 194 o G

I am looking to find gross sales and cash collections numbers 3 and 4 of my problem. That is all the information I have.

Answer 1

	2015	2014
Accounts Receivable, Gross	$    863,681.00	$        785,594.00
Accounts Receivable, Written off	$        3,152.00
Gross Sales	$ 6,230,924.00
Cash Collections	$ 6,146,200.00

Working:

1.

	2015	2014
Accounts Receivable (Net)	$ 840,210.00	$ 759,800.00
Add: Allowances	$ 23,471.00	$ 25,794.00
Accounts Receivable, Gross	$ 863,681.00	$ 785,594.00

2.

Particulars	Amount ($)
Allowance for doubtful accounts: Beginning balance	$              9,155.00
Add: Bad debt expense	$              3,100.00
Less: Closing Balance end of the Year	$            (9,103.00)
Bad debts written off in 2015	$              3,152.00

3.

Particulars	Amount ($)
Balance, End of the Year	$            14,368.00
Add: Actual Returns	$              3,395.00
Less: Balance beginning of year	$          (16,639.00)
Estimated sales returns	$              1,124.00
Gross sales = Net sales + Estimated sales return
=6229800+1124=$6230924

4.

Particulars	Amount ($)
Balance, beginning of year	$               785,504.00
Add: Credit Sales	$            6,230,924.00
Less: Bad Debts Write offs	$                  (3,152.00)
Less: Actual Sales Returns	$                  (3,395.00)
Less: Balance end of year Cash collections	$              (863,681.00)
Cash Collected From Customers 2015	$            6,146,200.00