Compute the net realizable value of receivables

Assignment Help Accounting Basics
Reference no: EM131795728

Problem

The following information is available for Quality Book Sales' sales on account and accounts receivable:

  Accounts receivable balance, January 1, 2016

$  78,500

  Allowance for doubtful accounts, January 1, 2016

4,710

  Sales on account, 2016

550,000

  Collection on accounts receivable, 2016

556,000

After several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected. Quality Book Sales estimates that 4 percent of the ending accounts receivable balance will be uncollectible.

Required

a. Compute the following amounts:

(1) Using the allowance method, the amount of uncollectible accounts expense for 2016.

(2) Net realizable value of receivables at the end of 2016.

b. Record the general journal entries to:

(1) Record sales on account for 2016.
(2) Record cash collections from accounts receivable for 2016.
(3) Write off the accounts that are not collectible.
(4) Record the estimated uncollectible accounts expense for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Reference no: EM131795728

Questions Cloud

Adjusting entry for vizarro co to recognize bad debts : Prepare the adjusting entry for Vizarro Co. to recognize bad debts under each of the following independent assumptions
Expect for epigallocatechin gallate : What chemical changes you expect for epigallocatechin gallate when it is heated in boiling water for 10 minutes.
Create an outline countering your original position : Create an outline supporting your position. You should include a minimum of 5 points and each point should be fully supported with sub points.
Expect for epigallocatechin gallate in green tea : What chemical changes you expect for epigallocatechin gallate in green tea when the tea exposes to air overnight.
Compute the net realizable value of receivables : Compute the Net realizable value of receivables at the end of 2016. Using the allowance method, the amount of uncollectible accounts expense for 2016.
What should company a bond be selling : ABC Corp. has a bond outstanding that pays a 7% coupon. The interest is paid semiannually, and the bond matures in 10 years. If the market rate of interest.
What is the present value of the distributions : Your trust fund will pay distribute $60,000 per year over the next 20 years. Using a 10% rate of return, what is the present value of the distributions
What is the bond annual coupon interest rate : Moussawi Ltd's outstanding bonds have a $1,000 par value, and they mature in 5 years. Their yield to maturity is 9% based on semiannual compounding.
State your reason for or against the right to end ones life : The mother who has taken care of her son for more than 10 years seeks the decision of the court in allowing her son to receive a lethal injection.

Reviews

Write a Review

Accounting Basics Questions & Answers

  On nov 1 2007 you sold some equipment for 2200 you receive

on nov 1 2007 you sold some equipment for 2200. you receive a down payment of 500 and a note for the balance. you are

  Explain one of the three elements that are present when

describe one of the three elements that are present when fraud occurs. of the three elements which do you think is

  Compute the total gain or loss on the retirement

Sean Company issued 10-year, 10% bonds with par value of $800,000 on January 1, 2007, for $900,000. Interest is payable annually on December 31.

  Describe the apparent differences in the order of

describe the apparent differences in the order of presentation of the components of the balance sheet between ifrs as

  Analyze effect of transactions on the financial statement

Presented below is a list of possible transactions. Analyze the effect of the 18 transactions on the financial statement categories indicated.

  What is the expected return of the stock

Suppose GP issues $ 223 million of new stock to buy back the debt. What is the expected return of the stock after this? transaction

  Prepare a corrected retained earnings statement

Prepare a corrected retained earnings statement. Concord Corp. normally sells investments of the type mentioned above

  Calculate the gain or loss on the sale of the asset

On January 1, 2011, the asset was sold for $180,000. Calculate the gain or loss on the sale of the asset in 2011

  Kinsey company had beginning inventory of 50000 ending

1 purchase discounts lost should be a. added to the merchandise inventory account to determine the cost of inventory on

  Need to prepare an income statement beginning with income

yr ending dec. 2012 abc corp. had income from operations before taxes of 1200000 before considering the following. see

  Prepare a contribution margin income statement

Prepare a contribution margin income statement based on a volume of 3,000 windows. Sales Cost of goods sold Gross profit Operating expenses Advertising expense Salaries.

  What additional procedures pherson must perform

Criticize the positions taken by Pherson and Collier, and express your own opinion about the similarities and differences that should exist in understanding internal control and assessing control risk for different-sized companies.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd