During 2017 sales on account were $866000 and collections on account were $522000. Also during 2017 the company wrote off $42500 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $329000. The change in the cash realizable value from the balance at 12/31/16 to 12/31/17 was a

Answers

Answer 1

Answer:

There is a change of $27,500 (decrease)

Explanation:

Cash realizable value is the amount of money that the company expects to receive from their accounts receivable after deducting all uncollectible accounts.

First, we must compute the change in gross accounts receivable from the transactions happened during the year.

Sales on account less collections less write-offs = change in Gross accounts receivable.

$866,000 - ($522,000 + $42,500) = $301,500 (increase in gross accounts receivable)

Finally, we can now compute the change in cash realization value by deducting uncollectible accounts to gross accounts receivable.

$301,500 - $329,000 = ($27,500)

Related Questions

Kitchens Sales Inc. is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers: Direct materials $554 Direct labor 364 Variable manufacturing support 56 Fixed manufacturing support 120 Total manufacturing costs 1,094 Markup (50%) 547 Targeted selling price $1,641 Kitchens Sales inc. has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $66 per unit. The average marketing cost of Kitchens Sales product is $173 per order. Other than price, what other items should Kitchens Sales consider before accepting this one-time-only special order
Suppose the demand and supply curves for good X are both linear. And, the demand price for the first unit of X is $14, and the supply price for the first unit of X is $3. If the equilibrium price for good X is $8 and the equilibrium quantity of X is 12,000 units, then total consumer surplus is $________, total producer surplus is $________, and total social surplus is $__________ a. $36,000; $30,000; $66,000b. $30,000; $36,000; $66,000c. $6; $5; $11d. $6,000; $5,000; $11,000
Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602).
Hitzu Co. sold a copier (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 5% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $146 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. 1. How much warranty expense does the company report for this copier in Year 1?
A. The August 31 balance shown on the bank statement is $9,799. b. There is a deposit in transit of $1,247 at August 31. c. Outstanding checks at August 31 totaled $1,870. d. Interest credited to the account during August but not recorded on the company's books amounted to $115. e. A bank charge of $37 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived. f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $625 had been recorded as a disbursement of $367. g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,356.Required: Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.

A cafeteria buys muffins daily. Demand varies Uniformly between 30 and 50 muffins per day. The cafeteria pays $.20 per muffin and charges $.80 per muffin. Unsold muffins are discarded at the end of the day. A) Find the optimal stocking level and the stock-out risk for that quantity.

Answers

Answer:

The optimal stocking level is 45 muffins.

Explanation:

First we have to calculate the Overage cost Co = Purchase price - Salvage value = $0.2 - 0 = $0.2

Then the Underage cost Cu = Selling price - Purchase price =$0.80 - $0.2 = $0.60

Service level = Cu / (Cu + Co) = $0.60/($0.60+$0.2) = $0.75

Hence, optimal stocking level = Minimum demand + Service level *(Maximum demand - Minimum demand)

optimal stocking level = 30 + 0.75*(50-30) = 45

The optimal stocking level is 45 muffins.

Optimal stocking level = 68.75 Muffins

The following information relates to Jay Co.’s accounts receivable for 2016: Accounts receivable balance, 1/1/2016 $650,000 Credit sales for 2016 2,700,000 Sales returns during 2016 75,000 Accounts receivable written off during 2016 40,000 Collections from customers during 2016 2,150,000 Allowance for uncollectible accounts balance, 12/31/2016 110,000 What amount should Jay report for accounts receivable, before allowances, at December 31, 2016?

Answers

Answer:

$1,085,000

Explanation:

The computation of the ending account receivable balance is shown below:

= Accounts receivable balance, 1/1/2016 + credit sales - sales returns - written off amount - Collections from customers

= $650,000 + $2,700,000 - $75,000 - $40,000 - $2,150,000

= $1,085,000

Since we have to find out the account receivable balance before allowances so we do not considered it.

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Hartley Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20000 units annually. Planter is a low-volume iterm totaling only 6000 units per year. Flower requires 1 hour or are 2000 completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 12000). Expected annual manufacturing overhead costs are $960000. Hartey uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of:________. a. need more information to compute.
b. $60.
c. $30.
d. $36.92

Answers

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Estimated manufacturing overhead= 960,000

Estimated number of hours= 32,000

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 960,000/32,000= $30 per direct labor hour

Now, we can allocate to each unit of Planter:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 30*2= $60

When would a letter of comments be issued by the SEC?To request clarification of a registration statement.To convey your pertinent comments to the SEC.In response to a company's filing of Form 8-K.After receiving the company's Form 10-K.To indicate that a registration statement has been approved.A proxy statement must be filed with the SEC at least how many days before being distributed?Multiple Choicea. 30 days.b. 60 days.c. 10 days.d. 90 days.e. 7 days.

Answers

Answer: C

10 days

Explanation:

A letter of comments is issued by the Security and Exchange Commission when they identify issues that can be improved on by a firm in order to improve its financial disclosures. All firms that are issued a comment letter must respond to them until its satisfies the requirement of the Exchange. This letter typically has a response period of 10 days, although it can be increased by a counsel call by the firm's management to SEC.

Malaya Ramirez is organizing marketing research in Central American countries for a large American corporation that is interested in expanding its market. The survey Malaya is using was written in English and then translated into Spanish for use by Spanish-speaking respondents. Which of the following is it most important for Malaya do before administering this questionnaire to a sample of the market?A) make sure that the survey includes both open-ended and closed-ended questions
B) decide whether to focus on primary or secondary data
C) determine which type of research instrument to use
D) have the questionnaire translated back into English to check for accuracy
E) determine whether to focus on descriptive or causal objectives

Answers

The questionnaire was translated back into English to check for accuracy. Thus option D is correct.

What is the marketing research ?

Marketing research is the systematic gathering, recording, and analysis of the information that is qualitative and quantitative related to the marketing of products and services. It is the marketing of the business activities.

The research includes the B2B and B2C. The main objective is to provide relevant and accurate reliable information. The research relies on surveys and questionnaires as tools of gathering information.

Find out more information about the Malaya Ramirez.

brainly.com/question/2889076.

Answer:

The correct answer is letter "D": have the questionnaire translated back into English to check for accuracy.

Explanation:

Translating is the activity by which the message given in a language is provided written in a different language. However, all languages are not the same and during the translation, meaning can be lost. Besides, specific terminology could make the translation difficult for the translator.

Thus, for accuracy purposes Malaya Ramirez should have the English-Spanish translation checked, making it be translated back into English.

Everything else the same, the higher the expected rate of inflation, _____. a. the lower the loss in purchasing power of investors
b. the higher the required rate of return on an investment
c. the lower the maturity premium required by the investors
d. the higher the money supply in the economy
e. the lower the tax rate in the economy

Answers

Answer: b. the higher the required rate of return on an investment

Explanation: Inflation is an increase in the general level of prices or in the cost of living. It is the decline in the value of money and as such it erodes the purchasing power of future cash flows or investments. All things being equal, higher inflation rates (current or expected) equates to rising yields across the yield curve. As a result, investors demand this higher yield to account for the risk of inflation. This makes option b the only option that is true and accurate.

Final answer:

The higher the expected rate of inflation, the higher the required rate of return on an investment.

Explanation:

The correct answer is b. The higher the expected rate of inflation, the higher the required rate of return on an investment. When the expected rate of inflation is high, investors require a higher rate of return to compensate for the loss in purchasing power of their money. This is because high inflation erodes the value of money over time, reducing the real return on an investment. Therefore, investors demand a higher rate of return to maintain their purchasing power.

Learn more about expected rate of inflation here:

brainly.com/question/36617009

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Brief Exercise 3-7 Sheridan Company’s weekly payroll, paid on Fridays, totals $6,600. Employees work a 5-day week. Prepare Sheridan’s adjusting entry on Wednesday, December 31, and the journal entry to record the $6,600 cash payment on Friday, January 2. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Kincaid Company provided consulting service of $2,500 to a customer who paid $1,300 and promised to pay the remainder next month. Which of the following journal entries correctly records this transaction? a. Cash1,300 ,Accounts payable1,200, Consulting revenue 2,500b. Cash1,300, Accounts receivable1,200, Consulting revenue2,500c. Cash1,300, Consulting revenue1,300, Consulting revenue2,50d. Cash1,300, Accounts receivable1,200

The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $ 90,695 $ 30,155 Available-for-sale debt securities (not cash equivalents) 21,500 97,000 Accounts receivable 92,000 79,050 Inventory 177,000 155,800 Prepaid insurance 2,580 3,200 Land, buildings, and equipment 1,274,000 1,137,000 Accumulated depreciation (622,000 ) (584,000 ) Total assets $ 1,035,775 $ 918,205 Accounts payable $ 87,140 $ 160,670 Salaries payable 24,800 30,500 Notes payable (current) 35,800 87,000 Bonds payable 212,000 0 Common stock 300,000 300,000 Retained earnings 376,035 340,035 Total liabilities and shareholders' equity $ 1,035,775 $ 918,205 Additional information for 2018: (1.) Sold available-for-sale debt securities costing $75,500 for $81,200. (2.) Equipment costing $20,000 with a book value of $6,200 was sold for $7,800. (3.) Issued 6% bonds payable at face value, $212,000. (4.) Purchased new equipment for $157,000 cash. (5.) Paid cash dividends of $26,000. (6.) Net income was $62,000.Prepare a statement of cash flows for 2018 in good form using the indirect method for cash flows from operating activities.

Assume that Jose is indifferent between investing in a corporate bond that pays 10 percent interest and a stock with no growth potential that pays an 9.7 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Jose's marginal tax rate?a. 47%.b. 37%.c. 32%.d. 15%.e. None of these.