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Bad Debts; Direct Method versis Indirect Method (a) Prepare the Operating Activities section of the statement of ca...
Create the “Operating Section”of the statement of cash flows using the indirect method(ONLYTHE OPERATING SECTION). Place...
Create the “Operating Section”of the statement of cash flows
using the indirect method(ONLYTHE
OPERATING SECTION).
Place your answer on this
page(operating section only, indirect
method).
Statement of Cash Flows - Indirect Review 2025 12.000 125.000 1.000 75.000 300.000 (20.000) 23 000 15,000 14.000 Balance Sheet - Selected Info. Cash Accounts Receivable Inventory Prepaid Insurance Property Plant & Equip Accumulated Depreciation Accounts Payable Salaries Payable Notes Payable (Short-Term) Dividends Pavable Bonds Payable Utilities Expense Salaries Expense Notes Payable (Long-Term) Common Stock...
We need use the data to prepare cash flows from operating activities section of the statement...
We need use the data to prepare cash flows from operating
activities section of the statement of cash flows using the
indirect method and develop cash flow
CASH FLOWS FROM OPERATING ACTIVITIES- INDIRECT METHOD PROBLEM DATA DEMONSTRATION COMPANY Comparative Balance Sheet Accounts December 31, 2005 2004 $30,000 $39,000 15,000 10,000 20,000 18,000 s.e Change Ce Current assets Accounts receivable Prepaid rent Inventory Current liabilities 18,000 12,000 Accounts payable Interest payable Taxes payable 6,000 2,000 3,000 S,000 DEMONSTRATION COMPANY Income Statement...
Using the percentage of sales method for recording bad debts expense, estimated uncollectible accounts are $11,000....
Using the percentage of sales method for recording bad debts expense, estimated uncollectible accounts are $11,000. If the balance of the Allowance for Doubtful Accounts is $2,000 credit before adjustment, what is the amount of bad debts expense for that period? OA. $13,000 O B. $11,000 OC $2,000 O D. $9,000
Required: Prepare the operating activities section of the statem using the indirect method. Prepare a statement...
Required: Prepare the operating activities section of the statem using the indirect method. Prepare a statement of cash flows-Indirect method (LO11-2, 11-3, 11-4, 11-5) 11-4A The income statement balance sheets, and additional information for Video Phones, Inc., are provided VIDEO PHONES, INC. Income Statement For the year ended December 31, 2021 $3,636,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,450,000 958,000 37,000...
Instructions (a) Calculate the total estimated bad debts based on the above information. (b) Prepare the...
Instructions
(a) Calculate the
total estimated bad debts based on the above information.
(b) Prepare the
year-end adjusting journal entry to record the bad debts using the
allowance method and the aged uncollectible accounts receivable
determined in (a). Assume the current balance in Allowance for
Doubtful Accounts is a $3,000 credit.
(c) Of the above
accounts, $1,600 is determined to be specifically uncollectible.
Prepare the journal entry to write off the uncollectible
accounts.
(d) The company
subsequently collects $700 on...
The following information is taken from the operating section of the statement of cash flows (direct...
The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders, Inc.: Collections from customers Payments to suppliers for purchases Payments for operating expenses Payments for income taxes Cash provided by operating activities $28,000 (13,000) (9,000) (4,000) 2,000 The following information is obtained from the income statement of Battery Builders Net income Depreciation expense Gain on sale of equipment Write-off of intangibles $4,000 4,000 2,000 1,000 In addition, the following information...
Kingbird, Inc. uses the allowance method of accounting for bad debts. The company produced the following...
Kingbird, Inc. uses the allowance method of accounting for bad
debts. The company produced the following aging of the accounts
receivable at year-end.
(a)
Calculate the total estimated bad debts on the below
information.
Number of Days Outstanding
Total
0–30
31–60
61–90
91–120
Over 120
Accounts Receivable
$472,000
$308,000
$88,000
$45,000
$18,000
$13,000
% uncollectible
1%
4%
5%
9%
11%
Estimated bad debts
$
$
$
$
$
$
bad debts Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful...
bad debts Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $86,000 and $4800, respectively. During Year 2, Allegheny wrote off $9000 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $7200. What amount will Allegheny report as bad debts Expense on its Year 2 income statement? $9000 $11,400 $2400 $7200
illustste t accounts for accounts receivable and allowance for bad debts A) On November 30, Penny...
illustste t accounts for accounts receivable and allowance for
bad debts
A) On November 30, Penny Cohada $41.000 halange in Accounts Recivable and a $3,584 credit balance in the Allowance for Uncollectible Accounts. During December. Pey made credit sales of $200,000. December collections on account were $168.000, and write-offs of uncollectible accounts totaled $2.910. Uncollectible account expense is estimated as 15 of credit sales. No sales returns are expected and ignore cost of goods sold REQUIRED: Journalire les collections, write-offs...
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section...
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Ending Balance $ 61,000 51,200 68,700 180,900 186,000 62,000 124,000 $ 304,900 Beginning Balance $ 72,650 55,000 62,500 190, 150 175,000 43,750 131,250 $ 321,400...
Create the “Operating Section”of the statement of cash flows
using the indirect method(ONLYTHE
OPERATING SECTION).
Place your answer on this
page(operating section only, indirect
method).
Statement of Cash Flows - Indirect Review 2025 12.000 125.000 1.000 75.000 300.000 (20.000) 23 000 15,000 14.000 Balance Sheet - Selected Info. Cash Accounts Receivable Inventory Prepaid Insurance Property Plant & Equip Accumulated Depreciation Accounts Payable Salaries Payable Notes Payable (Short-Term) Dividends Pavable Bonds Payable Utilities Expense Salaries Expense Notes Payable (Long-Term) Common Stock...
We need use the data to prepare cash flows from operating
activities section of the statement of cash flows using the
indirect method and develop cash flow
CASH FLOWS FROM OPERATING ACTIVITIES- INDIRECT METHOD PROBLEM DATA DEMONSTRATION COMPANY Comparative Balance Sheet Accounts December 31, 2005 2004 $30,000 $39,000 15,000 10,000 20,000 18,000 s.e Change Ce Current assets Accounts receivable Prepaid rent Inventory Current liabilities 18,000 12,000 Accounts payable Interest payable Taxes payable 6,000 2,000 3,000 S,000 DEMONSTRATION COMPANY Income Statement...
Using the percentage of sales method for recording bad debts expense, estimated uncollectible accounts are $11,000. If the balance of the Allowance for Doubtful Accounts is $2,000 credit before adjustment, what is the amount of bad debts expense for that period? OA. $13,000 O B. $11,000 OC $2,000 O D. $9,000
Required: Prepare the operating activities section of the statem using the indirect method. Prepare a statement of cash flows-Indirect method (LO11-2, 11-3, 11-4, 11-5) 11-4A The income statement balance sheets, and additional information for Video Phones, Inc., are provided VIDEO PHONES, INC. Income Statement For the year ended December 31, 2021 $3,636,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,450,000 958,000 37,000...
Instructions
(a) Calculate the
total estimated bad debts based on the above information.
(b) Prepare the
year-end adjusting journal entry to record the bad debts using the
allowance method and the aged uncollectible accounts receivable
determined in (a). Assume the current balance in Allowance for
Doubtful Accounts is a $3,000 credit.
(c) Of the above
accounts, $1,600 is determined to be specifically uncollectible.
Prepare the journal entry to write off the uncollectible
accounts.
(d) The company
subsequently collects $700 on...
The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders, Inc.: Collections from customers Payments to suppliers for purchases Payments for operating expenses Payments for income taxes Cash provided by operating activities $28,000 (13,000) (9,000) (4,000) 2,000 The following information is obtained from the income statement of Battery Builders Net income Depreciation expense Gain on sale of equipment Write-off of intangibles $4,000 4,000 2,000 1,000 In addition, the following information...
Kingbird, Inc. uses the allowance method of accounting for bad
debts. The company produced the following aging of the accounts
receivable at year-end.
(a)
Calculate the total estimated bad debts on the below
information.
Number of Days Outstanding
Total
0–30
31–60
61–90
91–120
Over 120
Accounts Receivable
$472,000
$308,000
$88,000
$45,000
$18,000
$13,000
% uncollectible
1%
4%
5%
9%
11%
Estimated bad debts
$
$
$
$
$
$
bad debts Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $86,000 and $4800, respectively. During Year 2, Allegheny wrote off $9000 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $7200. What amount will Allegheny report as bad debts Expense on its Year 2 income statement? $9000 $11,400 $2400 $7200
illustste t accounts for accounts receivable and allowance for
bad debts
A) On November 30, Penny Cohada $41.000 halange in Accounts Recivable and a $3,584 credit balance in the Allowance for Uncollectible Accounts. During December. Pey made credit sales of $200,000. December collections on account were $168.000, and write-offs of uncollectible accounts totaled $2.910. Uncollectible account expense is estimated as 15 of credit sales. No sales returns are expected and ignore cost of goods sold REQUIRED: Journalire les collections, write-offs...
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Ending Balance $ 61,000 51,200 68,700 180,900 186,000 62,000 124,000 $ 304,900 Beginning Balance $ 72,650 55,000 62,500 190, 150 175,000 43,750 131,250 $ 321,400...
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