Homework Answers
Credit manager of ABC is performing better. Credit losses occur due to the customers defaulting on the payments. The customers for a company are selected based on their credit ranking which is decided by the credit manager.
Here it is mentioned that 1% of firm XYZ account receivables proved to be uncollectible. Account receivables are short term obligation from customers and are granted by Credit managers after checking customers credit history. Since this shown losses, firm XYZ credit mangers are not performing better compared to ABC credit managers.
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1. Assume there are two competitor firms, ABC and XYZ. ABC had no credit losses last...
In 2015, XYZ Corp. had an annual cost of goods sold of $365 million. XYZ's average...
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Aging Schedule (Excel) Mets Company had a $1,000 credit balance in Allowance for Doubtful Accounts at...
Aging Schedule (Excel) Mets Company had a $1,000 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $110,000 2% 1-30 days past due 30,000 5% 31-60 days past due 20,000 8% 61-90 days past due 25,000 15% Over 90 days past due 15,000 40% Total Accounts Receivable $200.000 Instructions: You must show and explain your answers...
Aging Schedule (Excel) MetS company had a $1,000 credit balance in Allowance for Doubtful Accounts at...
Aging Schedule (Excel) MetS company had a $1,000 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $110,000 2% 1-30 days past due 30,000 31-60 days past due 20,000 8% 61-90 days past due 25,000 15% Over 90 days past due 15,000 40% Total Accounts Receivable $200.000 5% Instructions: You must show and explain your answers...
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During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales S422,000 111,000...
During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales S422,000 111,000 Collection on Credit sales Beginning Accounts Receivable Ending Accounts Receivable 300,000 54,000 Allowance for Doubtful Accounts 2,700 Credit 1. Experience suggests that bad debts will amount to 2.7% of credit sale. The company uses the percent-of-sales allowance method to account for uncollectibles. Journalize the Bad Debt Expense. Assume the same facts as in #1 except Luke's Hobbies uses the percent-of-receivable method. Experience suggests that...
In 2015, XYZ Corp. had an annual cost of goods sold of $365 million. XYZ's average accounts receivable balance in 2015 was $35 million, and their average accounts payable balance was $ 10 million. The terms that XYZ receives on trade credit from its suppliers are 3/20, net 30. Is XYZ managing its accounts payable well? Why/why not? O No, because they are paying their suppliers too late O No, because they are paying their suppliers too early Yes, because...
On January 1, Putnam Wholesale Company's Allowance for Doubtful Accounts had a credit balance of $21,00O. During the year, it had net credit sales of $800,000 and it had $25,000 of uncollectible accounts receivable that were written off. Past experience indicates that the allowance should be 8% of the balance in receivables (percentage-of- receivables basis). If the accounts receivable balance at December 31 is $300,000, what is the required credit adjustment to the Allowance for Doubtful Accounts at December 31?...
Aging Schedule (Excel) Mets Company had a $1,000 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $110,000 2% 1-30 days past due 30,000 5% 31-60 days past due 20,000 8% 61-90 days past due 25,000 15% Over 90 days past due 15,000 40% Total Accounts Receivable $200.000 Instructions: You must show and explain your answers...
Aging Schedule (Excel) MetS company had a $1,000 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $110,000 2% 1-30 days past due 30,000 31-60 days past due 20,000 8% 61-90 days past due 25,000 15% Over 90 days past due 15,000 40% Total Accounts Receivable $200.000 5% Instructions: You must show and explain your answers...
Uncollectible Accounts Receivable: [201280Q5022320] Merle Company sells only on account and had a balance in its Accounts Receivable [AR] account at the start of Year 2 of $1,300. The balance in the Allowance for Uncollectible Accounts [AUA) at the start of Year 2 was $85. In Year 2, the firm had credit sales of $6,700 and collections on account of $5,600. Write-offs and recoveries of previous write-offs in Year 2 were $360 and $35, respectively. In Year 3, the firm...
During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales S422,000 111,000 Collection on Credit sales Beginning Accounts Receivable Ending Accounts Receivable 300,000 54,000 Allowance for Doubtful Accounts 2,700 Credit 1. Experience suggests that bad debts will amount to 2.7% of credit sale. The company uses the percent-of-sales allowance method to account for uncollectibles. Journalize the Bad Debt Expense. Assume the same facts as in #1 except Luke's Hobbies uses the percent-of-receivable method. Experience suggests that...
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