If a company is interested primarily in matching expenses and revenues each period, would it base...
- If a company is interested primarily in matching expenses and revenues each period, would it base its estimate of uncollectible accounts on sales or on accounts receivable? Explain.
Homework Answers
True;since the company is applying "matching concept" they can anticipate the uncollectible account on sales or on accounts receivables. It can gives raises us two acoounts i.e
1.provision for doubtful debts: its not always we say that, every receivable is realisable fully hence it lead to bad debts so that they will anticipate , basedupon the account receivables they have made or by their previous experience in this way they can anticipate.
2.sales return reserve: in this account also we are likey to receive goods back after the sale. an percentage is calculated on the gross sale current will be taken in this way they will anticipate.
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If a company is interested primarily in matching expenses and
revenues each period, would it base...
To achieve a proper matching of sales revenues and expenses, a company must estimate the amount...
To achieve a proper matching of sales revenues and expenses, a company must estimate the amount of bad debt expense to report on the income statement as an end-of-period adjustment, true or false.
1. When will revenues and matching expenses be recognized? A.) The goods are shipped to customers...
1. When will revenues and matching expenses be recognized? A.) The goods are shipped to customers increasing accounts receivable B.) Raw materials or finished goods are purchased increasing accounts payable C.) Goods are received into finishing goods inventory D.) Suppliers are paid cash reducing accounts payable E.) Customers pay cash reducing accounts receivable
Savvy Sightseeing had beginning equity of $73,000; revenues of $93,000, expenses of $66,000, and dividends to...
Savvy Sightseeing had beginning equity of $73,000; revenues of $93,000, expenses of $66,000, and dividends to stockholders of $9,100. There were no stockholder investments during the year. Calculate ending equity. Multiple Choice $27,000. $90,900. $46,000. $36,900. $100,000. On September 12, Vander Company sold merchandise in the amount of $7,400 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5,600. Vander uses the periodic inventory system and the gross method of accounting for sales....
Click to watch the Tell Me More Leaming Objective 4 video and then answer the questions below. 1. Under the allowan...
Click to watch the Tell Me More Leaming Objective 4 video and then answer the questions below. 1. Under the allowance method for uncollectible accounts, the journal entry to record the estimate of uncollectible accounts would include a credit to a. Accounts Receivable. b. Bad Debt Expense. C. Allowance for Doubtful Accounts. d. Cash 2. Under the allowance method for uncollectible accounts, the journal entry to record the write-off of an account receivable would include a a. credit; Bad Debt...
Accounts receivable for the Clyborn Company totaled $41,000 and the Allowance for Uncollectible Accounts balance was...
Accounts receivable for the Clyborn Company totaled $41,000 and the Allowance for Uncollectible Accounts balance was positive $570 at year end after write offs (i.e., the bad debt expense had been over estimated in the prior period) but before recording the year-end estimate of uncollectible accounts. The company wrote off $490 of uncollectible accounts during the year. Management estimated that 3% of its net credit sales of $55,000 would not be collected. Compute the bad debt expense for the year...
At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $203,500 and in A...
At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $203,500 and in Allowance for Doubtful Accounts of $8,620 (credit). During the period, it had net credit sales of $739,000 and collections of $813,450. It wrote off as uncollectible accounts receivable of $7,198. However, a $2,978 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,810 at the end of the period. (Omit...
At the beginning of the current period, Sheridan Company had balances in AcCounts Receivable of $203,500...
At the beginning of the current period, Sheridan Company had balances in AcCounts Receivable of $203,500 and in Allowance for Doubtful Accounts of $8,620 (credit). During the period, it had net credit sales of $739,000 and collections of $813,450. It wrote off as uncollectible accounts receivable of $7,198. However, a $2,978 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,810 at the end of the period. (Omit...
At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $203,500...
At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $203,500 and in Allowance for Doubtful Accounts of $8,620 (credit). During the period, it had net credit sales of $739,000 and collections of $813,450. It wrote off as uncollectible accounts receivable of $7,198. However, a $2,978 account previously written off as uncollectible was recovered before the end of the current period. Uncollect ible accounts are estimated to total $26,810 at the end of the period....
Please answer the question below, thanks! At the beginning of the current period, Crane Company had...
Please answer the question below, thanks!
At the beginning of the current period, Crane Company had balances in Accounts Receivable of $192,800 and in Allowance for Doubtful Accounts of $8,520 (credit). During the period, it had credit sales of $722,500 and collections of $708,940. It wrote off as uncollectible accounts receivable of $7,972. However, a $3,275 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $22,740 at the...
12) Henderson Company reports the following: Earned revenues of $70,000. Expenses of $40,000. Prepaid $9.000 cash...
12) Henderson Company reports the following: Earned revenues of $70,000. Expenses of $40,000. Prepaid $9.000 cash for costs that will not be expensed until next year. What is net income for the company? 13) A company had $4,200,000 in net income for the year. Its net sales were $11.800.000 for the same period. Calculate its profit margin.
Click to watch the Tell Me More Leaming Objective 4 video and then answer the questions below. 1. Under the allowance method for uncollectible accounts, the journal entry to record the estimate of uncollectible accounts would include a credit to a. Accounts Receivable. b. Bad Debt Expense. C. Allowance for Doubtful Accounts. d. Cash 2. Under the allowance method for uncollectible accounts, the journal entry to record the write-off of an account receivable would include a a. credit; Bad Debt...
At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $203,500 and in Allowance for Doubtful Accounts of $8,620 (credit). During the period, it had net credit sales of $739,000 and collections of $813,450. It wrote off as uncollectible accounts receivable of $7,198. However, a $2,978 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,810 at the end of the period. (Omit...
At the beginning of the current period, Sheridan Company had balances in AcCounts Receivable of $203,500 and in Allowance for Doubtful Accounts of $8,620 (credit). During the period, it had net credit sales of $739,000 and collections of $813,450. It wrote off as uncollectible accounts receivable of $7,198. However, a $2,978 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,810 at the end of the period. (Omit...
At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $203,500 and in Allowance for Doubtful Accounts of $8,620 (credit). During the period, it had net credit sales of $739,000 and collections of $813,450. It wrote off as uncollectible accounts receivable of $7,198. However, a $2,978 account previously written off as uncollectible was recovered before the end of the current period. Uncollect ible accounts are estimated to total $26,810 at the end of the period....
Please answer the question below, thanks!
At the beginning of the current period, Crane Company had balances in Accounts Receivable of $192,800 and in Allowance for Doubtful Accounts of $8,520 (credit). During the period, it had credit sales of $722,500 and collections of $708,940. It wrote off as uncollectible accounts receivable of $7,972. However, a $3,275 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $22,740 at the...
12) Henderson Company reports the following: Earned revenues of $70,000. Expenses of $40,000. Prepaid $9.000 cash for costs that will not be expensed until next year. What is net income for the company? 13) A company had $4,200,000 in net income for the year. Its net sales were $11.800.000 for the same period. Calculate its profit margin.
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