Corporation for 2015: Credit sales during the year $1‚600‚000 Accounts Receivable—December 31‚ 2015 235‚000 Allowance for Doubtful Accounts—December 31‚ 2015 18‚000 Bad debt expense for the year 11‚000 What amount will Wang show on its year-end balance sheet for the net realizable value of its accounts receivable? A. $253‚000 B. $235‚000 C. $224‚000 D. $217‚000 3. The data below is for Music Corporation for 2015. Accounts receivable - January 1‚ 2015 $236‚000 Credit sales during 2015 820‚000 Collections
Premium Balance sheet Generally Accepted Accounting Principles Debt
easily and used up or liquidated within one year of a company operating cycle. Current assets are considered short term and include cash on hand‚ cash in a bank account‚ current debts. Current assets are items listed on the balance sheet in the order of liquidity which include cash‚ temporary investments‚ accounts receivable‚ inventory and supplies. Any asset which is not easy to convert to cash or not expected to become cash within the next year is a noncurrent asset. Non-current assets
Premium Balance sheet Generally Accepted Accounting Principles Asset
ACC121 FINAL EXAM – Problems (130 points total) First 10 problems @ 11 points each; 1 problem @ 20 points Student name _Katerina Worley______________________ Date _6/23/15____________________ 1. Given the following information about purchases and sales during the year‚ compute the cost to be assigned to ending inventory under each of three methods: (a) average-cost‚ (b) FIFO‚ and (c) LIFO. (Show your work.) Assume that a periodic inventory system is used. Jan. 1 Beginning inventory 225 items
Premium Balance sheet Generally Accepted Accounting Principles Accounts receivable
(A) Accrued tax payments (B) Line of credit (C) Transaction loans (D) Factored accounts receivable __________7. The primary advantage that factoring accounts receivable provides is: (A) the flexibility it gives to the borrower (B) that the financial institution bears the risk of collection (C) the low cost as compared with other sources of short-term financing (D) that the financial institution services the accounts. __________8. The cost of trade credit varies with the: (A) size of the cash discount
Premium Balance sheet Accounts receivable Debt
all instances? Provide sample transactions from your own experiences to demonstrate the validity of the Accounting Equation. 2) What does the term account mean? What are the different classifications of accounts? How do the rules for debits and credits impact accounts? Please provide an example of how debits and credits impact accounts. 3) The balance sheet is a financial snap shot of a company at a particular point in time. The balance sheet lists the assets‚ liabilities‚ and equity
Premium Balance sheet Generally Accepted Accounting Principles Liability
Inc. on July 1‚ 2012. During July the following transactions were completed. July 1 Issued 12‚000 shares of common stock for $12‚000 cash. July 1 Purchased used truck for $8‚000‚ paying $2‚000 cash and the balance on account. July 3 Purchased cleaning supplies for $900 on account. July 5 Paid $1‚800 cash on 1-year insurance policy effective July 1. July 12 Billed customers $3‚700 for cleaning services. July 18 Paid $1‚000 cash on amount owed on truck and $500 on amount owed on cleaning supplies
Premium Generally Accepted Accounting Principles Balance sheet Accounts receivable
customer and tighten up accounts receivable in both times I did the simulation. I chose to take on a new customer because SNC needed the exposure to become known as it is starting to get widespread exposure. The results of this acquisition were that it increased the sales significantly but also left us with higher receivable an inventory balances. (Harvard SNC Synopsis) The results of tightening up the accounts receivable were that sales have declined but the receivables improved which freed up cash
Premium Accounts receivable Decision making Corporate finance
Current and Noncurrent Assets Current Assets A current asset is an asset such as cash‚ receivables‚ or inventory that can be converted into cash‚ consumed‚ or sold within a year’s time or a normal operating business cycle. These assets are listed on a company’s balance sheet as cash‚ unexpired insurance‚ accounts receivable‚ supplies‚ etc. and are expect to leave the balance sheet in the near future. Current assets get used up quickly and are used to pay current liabilities. Current assets are
Premium Balance sheet Generally Accepted Accounting Principles Asset
a). |Account Balance |% change 2010-2011 |% Change 2009-2010 | |Net sales |1.45% |2.70% | |Cash |5.41% |-9.19% | |Net income |16.50% |-39.54% | |Accounts payable |37
Premium Balance sheet Generally Accepted Accounting Principles Accounts receivable
seasonal business‚ and the following summary balance sheet data show its assets and liabilities at peak and off-peak seasons (in thousands of dollars): Peak Off-Peak Cash $ 50 $ 30 Marketable securities 0 20 Accounts receivable 40 20 Inventories 100 50 Net fixed assets 500 500 Total assets $690 $620 Payables and accruals
Premium Balance sheet Generally Accepted Accounting Principles Inventory