A note usually bears interest for the entire period. If the sales staff is opposed to this recommendation, at the very least a set of specific criteria should be developed which would ensure that the selling staff only grant credit to those customers who meet the company's credit standards. 300, 000 2, 250, 000 2, 020, 000 230, 000 29, 500 200, 500 3, 500 204, 000 3, 500 200, 500.
- Accounting principles third canadian edition chapter 8 answers.microsoft
- Accounting principles third canadian edition chapter 8 answers pdf
- Accounting principles third canadian edition chapter 8 answers.unity3d.com
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Accounting Principles Third Canadian Edition Chapter 8 Answers.Microsoft
25% x 1/12 = MGH $10, 200 x 6% x 1/12 = Total. 31 Interest Receivable................... FRN $9, 000 x 5. 62 times *Accounts receivable at the beginning of the year would have been $0 because this was the first year of business. The matching principle requires expenses to be recorded in the same period as the sales they helped generate. PROBLEM 8-8A (a) Jan. 2 Accounts Receivable—George......... Accounting principles third canadian edition chapter 8 answers.microsoft. 16, 000 Sales............................................... 16, 000.
Accounting Principles Third Canadian Edition Chapter 8 Answers Pdf
Bad Debts Expense............................................ 22, 870 Allowance for Doubtful Accounts................ [($255, 250 x 8%) + $2, 450]. 67, 200 22, 800 Dr. 18, 000 4, 800 Dr. 76, 200 71, 400. Interest should not be accrued on this note if it is unlikely to be collected. Bad Debts Expense........................... 12, 600 [($900, 000 - $50, 000 - $10, 000) x 1. Reliable customers may suddenly not be able to pay bills because of an unexpected decrease in revenues or an unexpected increase in expenses. 25%)................................... 24, 375 Allowance for Doubtful Accounts......... 24, 375. Included in the notes to the financial statements will be the terms of the note, 5% due on July 1, 2012. 1 Notes Receivable–Opal...................... Accounting principles third canadian edition chapter 8 answers pdf. 12, 000 Accounts Receivable–Opal........... June 30 Interest Receivable [$12, 000 x 7% x 2/12].......................... Interest Revenue............................ 12, 000. Subsidiary ledger account balances: Elaine Davidson...................................................... Andrew Noren.......................................................... Erik Smistad............................................................ Total......................................................................... Balance per general ledger control account......... 570 495 875 1, 223 1, 522 1, 422. Total Estimated percentage uncollectible Estimated uncollectible accounts. The presentation, analysis, and management of receivables. Bad debts expense Balance August 31.................................................. $ 85, 680 September entry...................................................... 10, 743 October entry........................................................... 26, 286 Total expense for the year...................................... $122, 709.
Accounting Principles Third Canadian Edition Chapter 8 Answers.Unity3D.Com
Current Ratio: 2004: $1, 710 ÷ $2, 259 = 0. 18, 000 11, 500 Dr. 3, 500 8, 000 Dr. 24, 375 16, 375. 5% x 3/12] 25 Notes Receivable—Avery.................. Accounts Receivable—Avery........ 6, 000. Brooks Company $9, 000 x 6% x 1/12.. Mathias Co, $4, 000 x 5. The fee is not large but is an ongoing expense. 385, 000 $220, 000 $100, 000. Interest receivable reported under the current asset section of the balance sheet total $3, 251 calculated as follows: Note 1. Date July 1 1 31 31. D) $44, 250 [$42, 000 + $2, 250] (e). Accounts Receivable......................... 639, 900 Sales............................................... Allowance for Doubtful Accounts. The longer a customer takes to pay, the more likely that he will default on the receivable. By allowing sales staff to assume the role of managing the credit function it appears that they have become too focused on sales without considering the quality of the sales and the ability of the customer to pay the receivable within a reasonable period of time. Accounting principles third canadian edition chapter 8 answers.unity3d.com. Shaw's receivables turnover was almost 100% higher than Rogers, which means Shaw was more efficient than Rogers in collecting its receivables.
DR 1, 000 10, 000 9, 000 1, 850 1, 850. B) $50, 000 [($2, 000, 000 x 2. 5/12 Total accrued interest. Accounts receivable. 25% x 6/12 = $1, 650 3. 91 times 2005: $7, 240 ÷ [($623 + $793) ÷ 2] = 10. It is unearned revenue. Net realizable value is the difference between Accounts Receivable (normal debit balance) and the Allowance for Doubtful Accounts (normal credit balance). Bad debts expense............................. 10, 743 Allowance for Doubtful Accounts [($546, 300 - $9, 170) x 2%].............. 10, 743. Accounts Receivable—Smistad......
SOLUTIONS TO PROBLEMS PROBLEM 8-1A (a). The material provided herein may not be downloaded, reproduced, stored in a retrieval system, modified, made available on a network, used to create derivative works, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise without the prior written permission of John Wiley & Sons Canada, Ltd. Cash is needed to pay for the inventory the company has purchased and to cover other operating expenses such as sales commissions. Accounts Receivable (a)...................... 2, 515, 000 Sales (e)............................................ ($25, 150 = 1% of sales; therefore sales = $2, 515, 000). PROBLEM 8-11B Rogers.
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