What amount will georgia report for accounts receivable and

Reference no: EM13482032

Georgia Company reported accounts receivable of $16.5 million at the end of its2007 fiscal year. This amount was net of an allowance for doubtful accounts of $1,800,000.During 2008, Georgia sold $56.5 million of merchandise on credit. It collected $57.9 millionfrom customers. Accounts valued at $1,980,000were written off as uncollectible during2008.

Georgia's management estimates that10% of the year-end Accounts Receivable balance willbe uncollectible.

Required:

Answer each of the followingquestions:

A. What amount will Georgia report for accounts receivable and the allowance for doubtful accounts at the end of 2008?

B. What is the Doubtful Accounts Expensefor 2008?

C. How will the accounts receivable andallowance accounts be presented on thebalance sheet? Show the balancesheet.

D. Why do companies record expenses fordoubtful accounts based on estimatesfrom receivables or sales during the prior yearrather than recording the expenses when accounts are written off in a futureperiod?

E. If estimated uncollectibles as apercentage of sales or receivables were to increaseover several years, what information might thisprovide to decision makers?

Reference no: EM13482032

Questions Cloud

Astair inc reported sales of 8000000 for the month and : astair inc. reported sales of 8000000 for the month and incurred variable expenses totaling 5600000 and fixed expenses

The companys accountant is trying to decide whether to : records of the genesis corporation reveal the following information about inventory during the year.january 1 beginning

Carmack company has credit sales of 26 million for year : carmack company has credit sales of 2.6 million for year 2011. on december 31 2011 the companys allowance for doubtful

Quarterly compounding cousin bertha invested 100000 10 : quarterly compounding cousin bertha invested 100000 10 years ago at 12 percent compounded quarterly. how much has she

What amount will georgia report for accounts receivable and : georgia company reported accounts receivable of 16.5 million at the end of its2007 fiscal year. this amount was net of

If the consultant labor cost on an engagement is 25000 what : mackenzie consulting computes the cost of each consulting engagement by adding a portion of frimwide support costs to

What is the present value of his consulting contract b : present value mr. flint retired as president of color title company but is currently on a consulting contract for 45000

Division a of smith company has the capacity for making : division a of smith company has the capacity for making 3000 motors per month and regularly sells 1950 motors each

Mike barton owns barton products inc the corporation has 30 : mike barton owns barton products inc. the corporation has 30 employees. barton corporation expects 800000 of net income

User Account

All Pages