question archive 1)Annapolis Company's bank statement indicated an ending cash balance of $9,640
1)Annapolis Company's bank statement indicated an ending cash balance of $9,640
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1)Annapolis Company's bank statement indicated an ending cash balance of $9,640. Alpha's accountant discovered that outstanding checks amounted to $715 and deposits in transit were $680. Additionally, the bank statement showed service charges of $35. What is the correct adjusted ending cash balance
Your Answer:
- Baltimore Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:
Dollar Value Age of Account Estimated Collectible
$155,000 < 30 days old 99%
70,000 30 to 60 days old 92%
40,000 61 to 120 days old 73%
9,000 > 120 days old 11%
The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar.
Your Answer:
- Dorchester Company had the following balances at the end of 2018 and 2019 respectively:
Net Credit Sales - $990,000 for 2018 and $932,000 for 2019.
Accounts Receivable - $92,000 for 2018 and $103,000 for 2019.
Allowance for Doubtful Accounts - $4,000 for 2018 and 5,500 for 2019
Calculate the accounts receivable turnover ratio to one decimal place.
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1)correct adjusted ending cash balance = $9570
2)Allowance for Doubtful accounts =$25,960
3)Accounts Receivable Turnover = 10.0 times
1)
correct adjusted ending cash balance = Cash Balance - Outstanding Check + Deposit in Transit - Service Charge
correct adjusted ending cash balance = $9,640 - $715 + $680 - $35
correct adjusted ending cash balance = $9570
2)
Estimated uncollectible = 155,000 * (1 - 0.99) + 70,000 * (1 - 0.92) + 40,000 *(1 - 0.73) + 9,000 *(1 - 0.11)
Estimated uncollectible = $25,960
Allowance for Doubtful accounts = estimated uncollectible (aging) = $25,960
3)
Net accounts receivable for 2018 = 92,000 - 4,000 = $88,000
Net accounts receivable for 2019 = 103,000 - 5,500 = $97,500
Average accounts receivables = (88,000 + 97,500)/2 = $92,750
Accounts Receivable Turnover = 2019 Net Credit sales/Average accounts receivables
Accounts Receivable Turnover = $932,000/$92,750
Accounts Receivable Turnover = 10.0 times
