Reference no: EM13550233
Aging Accounts Receivable - On September 30, 2007 (the end of its fiscal year), the Lufkin Corporation reported accounts receivable of $331,750 and an allowance for doubtful accounts of $16,700. During fiscal 2008 the following transactions occurred:
|
Credit sales (terms, n/EOM)
|
$2,017,800
|
|
Collections on accounts receivable
|
1,956,000
|
|
Accounts receivable written off
|
16,200
|
On September 30, 2008 an aging of the accounts receivable balance indicated the following:
|
Age
|
Amount
|
Estimated Percentage Uncollectible
|
|
Under 30 days
|
$169,250
|
0.80%
|
|
30-90 days
|
100,000
|
1.6
|
|
91-180 days
|
55,900
|
5
|
|
181-360 days
|
38,200
|
15
|
|
Over 360 days
|
14,000
|
40
|
|
$377,350
|
Required
1. Prepare the journal entries necessary to record the credit sales, collections on account, write-off of accounts receivable, and the bad debts expense for Lufkin for fiscal 2008.
2. What are Lufkin's September 30, 2008 balances in Accounts Receivable and in its Allowance for Doubtful Accounts and how will they be disclosed on the September 30, 2008 balance sheet?
3. Compute Lufkin's receivables turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies?
|
Calculate the total energy radiated by the sun each second
: The surface of the Sun has a temperature of about 5,800 K. The radius of the Sun is 6.96 108 m. Calculate the total energy radiated by the Sun each second
|
|
Calculate the angle and velocity of the pin
: A 7 kg bowling ball moving at 15 m/s hits a 1 kg pin at rest. The ball leaves at a 10 degree angle at 13 m/s. Calculate the angle and velocity of the pin immediately after the collision
|
|
Find the maximum transverse speed of an element of string
: The wave function for a traveling wave on a taut string is (in SI units) y(x,t) = 0.380 sin (12?t ? 1?x + ?/4), find the maximum transverse speed of an element of the string
|
|
What interest rate must the investment earn
: Determine the length of roadway that is in full superelevation for a four-lane expressway with a 60 mph design speed. The BC of the curve is at station 15+00 and has a minimum allowable radius. The curve delta is 25 degrees and 30’.
|
|
Bad debts expense for lufkin for fiscal 2008
: Prepare the journal entries necessary to record the credit sales, collections on account, write-off of accounts receivable, and the bad debts expense for Lufkin for fiscal 2008.
|
|
Calculate how much does the center of canoe move
: twin brothers each of mass 50 kg sit in a symmetric canoe of mass 40 kg. each boy sits 1.5m from the center of the canoe as they toss a basketball(mass= .60kg) back and forth. how much does the center of canoe move as the ball moves from one brothe..
|
|
Define a half-life that gets longer as the reaction proceeds
: Consider two reactions. Reaction (1) has a constant half-life, whereas reaction (2) has a half-life that gets longer as the reaction proceeds
|
|
What speed will the sleeve attain
: A Newtonian fluid is in the clearance between a shaft and a concentric sleeve. When a force of 600 N is applied to the sleeve parallel to the shaft, the sleeve attains a speed of 1 m/s. If a 1500 N force is applied
|
|
Estimate the pressure inside the suction cup
: A suction cup works by virtue of a vacuum that is created within the cup. When the cup is pressed against a flat surface, most of the air is forced out, what is the pressure inside the suction cup
|