Classifying Items Related to Receivables and Payables in a Balance Sheet
When examining the accounts of WholeFoods Company, we ascertain that balances relating to both receivables and payables are included in a single controlling account (called receivables), which has an $7,200 debit balance. An analysis of the details of this account reveals the following.
Items | Debit | Credit |
---|---|---|
Accounts receivable—customers | $16,000 | |
Accounts receivable—officers (current collection expected) | 1,000 | |
Travel advances to sales staff | 400 | |
Accounts payable for merchandise | $7,700 | |
Unpaid salaries | 1,320 | |
Credit balances in customer accounts (accounts receivable) | 800 | |
Cash received in advance from customers for goods not yet shipped | 180 | |
Allowance for doubtful accounts, adjusted | 200 |
Indicate how each of the items should be reported on WholeFoods Company’s balance sheet.
Cash and cash equivalents | Answer | |
Accounts receivable, trade | Answer | |
Less allowance for doubtful accounts |
Answer |
Answer |
Short-term investments | Answer | |
Inventory | Answer | |
Due from officers | Answer | |
Customer advances | Answer | |
Prepaid expenses | Answer | |
Accounts payable—trade | Answer | |
Amounts due to customers | Answer | |
Customer advances | Answer | |
Deferred revenue | Answer | |
Salaries payable | Answer | |
Due from officers | Answer |
Classifying Items Related to Receivables and Payables in a Balance Sheet When examining the accounts of...
Accounts receivable are shown on the balance sheet at their: Net realizable value Present value Trade value Book value If a customer dishonors a note receivable: The note should be converted to an account receivable The principle shall remain in the notes receivable account The company should send the customer a fruit basket Cash will be received at the due date Florence Company had a debit balance of $1,500 in the Allowance for Doubtful Accounts account and a debit balance...
Classifying Balance Sheet Accounts Use the letters a to k from the balance sheet classifications provided below to indicate the usual classification for each of the 22 balance sheet items listed below. Also indicate whether an account is a contra account. If the item is not a contra account, select "N/A" as your answer.. Balance Sheet Classification a. Current assets. g. Long-term liabilities. b. Investments. h. Paid-in capital. c. Property, plant, and equipment. i. Retained earnings. d. Intangible assets. j....
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Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? Bad Debt Expense 17,000 Allowance for Doubtful Accounts 17,000 Bad Debt Expense 19,500 Allowance for Doubtful Accounts 19,500 Bad Debt...
Credit Losses Based on Accounts Receivable At December 31, the Selling Company had a balance of $1,494,800 in its Accounts Receivable account and a credit balance of $16,800 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $1,516,000 in debit balances and $21,200 in credit balances. The company aged its accounts as follows: Current $1,220,000 0-60 days past due 180,000 61-180 days past due 76,000 Over 180 days past due 40,000 $1,516,000 In the past, the...
True/False Indicate whether the statement is true or false, 1. Receivables from company owners and officers should be disclosed separately on the balance sheet. 2. Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables. 3. The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary costs to get the asset in place and ready for use. 4. During construction of a building, the cost of interest...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $735,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,310,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $28,600. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $495,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,230,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $19,800. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $2,150,000; Allowance for Doubtful Accounts has a debit balance of $10,500; and sales for the year total $51,850,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $110,000 a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance...
Exercise 9-1 Classifying liabilities LO C1 The following items appear on the balance sheet of a company with a one year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or Nif it is not a liability. Item Classification 1.Notes payable (due in 13 to 24 months) 2. Notes payable (due in 6 to 11 months). 3. Notes payable (mature in five years). 4....
E5-4B (L02,3) (Preparation of a Classified Balance Sheet) Assume that Cluver Inc. has the following accounts at the end ofthe current year. 1. Accrued Salaries Payable. 14. Common Stock 2. Cash Restricted for Plant Expansion. 15. Treasury Stock (at cost). 3. Land Held for Future Plant Site. 16. Raw Materials. 4. Accumulated Depreciation Buildings. 17. Unearned Rent Revenue. 5. Retained Earnings 18. Copyrights. 6. Unearned Subscriptions Revenue. 19. Notes Receivable (short-term). 7. Finished Goods. 20. Cash. 8. Accounts Receivable. 21....