The Accounts Receivable balance for Bach Consulting is $4,400,000 as of May 31, 2020. Before calculating and recording the month’s bad debt expense, there is a credit balance in the Allowance for Doubtful Accounts of $80,000. The May 2020 net sales were $30,000,000. In the past several years, 1% of net sales have proven uncollectible. An aging of accounts receivable results in a $360,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2020.PART A: PERCENT OF SALES METHOD

Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.

What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________
PART B: ANALYSIS OF RECEIVABLES METHOD

Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.

What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________
Problem 3

Use PVH Corp.’s financial statement information to answer the following questions.

Provide the following account balances for PVH:
February 2, 2020

February 3, 2019

Accounts Receivable (gross)

Allowance for Doubtful Accounts

Accounts Receivable, net

Which of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)?
Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020?
Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020?
Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019.
Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.

Answers

Answer 1
Answer:

Answer:

Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.

What adjusting entry does Bach make to record May 2020 Bad Debt Expense?

Dr Bad debt expense 300,000 (= $30,000,000 x 1%)

    Cr Allowance for doubtful accounts 300,000

What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $4,100,000 (=  $4,400,000 - $300,000)

What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $300,000

Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.

What adjusting entry does Bach make to record May 2020 Bad Debt Expense?

Dr Bad debt expense 280,000 (= $360,000 - $80,000)

    Cr Allowance for doubtful accounts 280,000

What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $4,120,000

What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $280,000

Use PVH Corp.’s financial statement information to answer the following questions.

Provide the following account balances for PVH:

                                                  February 2, 2020      February 3, 2019

Accounts Receivable (gross)        $762,000,000      $800,000,000

Allowance for Doubtful Accounts   $21,000,000         $22,000,000

Accounts Receivable, net             $741,000,000       $778,000,000

Which of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)?

$741,000,000

Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020?

$21,000,000

Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020?

$762,000,000

Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019.

Dr Bad debt expense 22,000,000

    Cr Allowance for doubtful accounts 22,000,000

Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.

Dr Allowance for doubtful accounts 22,000,000

    Cr Accounts receivable 22,000,000

Explanation:

Accounts receivable = $4,400,000

beginning balance Allowance for doubtful accounts = $80,000

May's net sales = $30,000,000

1% of net sales are uncollectible

aging of accounts receivable results in a $360,000 estimate for the Allowance for doubtful accounts as of May 31, 2020


Related Questions

Blue Spruce Corp. reported net income of $377000 for the year. During the year, accounts receivable increased by $27000, accounts payable decreased by $12000 and depreciation expense of $59000 was recorded. Net cash provided by operating activities for the year is
Given the following data, calculate the Total Variable Cost variance. Planning Budget Actual Results Revenue $73,000 $75,000 Variable costs $23,000 $20,000 Contribution margin $50,000 $55,000 Fixed costs $15,000 $10,000 Profit before taxes $35,000 $45,000 a. $3,000 Favorable b. $3,000 Unfavorable c. $5,000 Favorable d. $5,000 Unfavorable e. $2,000 Unfavorable f. $2,000 Favorable
As a long-term investment, Painters' Equipment Company purchased 25% of AMC Supplies Inc.'s 500,000 shares for $580,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $350,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $615,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.
Suppose that Tucker Industries has annual sales of $6.60 million, cost of goods sold of $2.94 million, average inventories of $1,205,000, and average accounts receivable of $660,000. Assuming that all of Tucker's sales are on credit, what will be the firm's operating cycle? (Round your answer to 2 decimal places.)
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,600 units)$108,000 Variable expenses 49,680 Contribution margin 58,320 Fixed expenses 44,300 Net operating income$14,020 If the company sells 4,300 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

Changes in real GDP reflect Group of answer choices only changes in prices. only changes in the amounts being produced. both changes in prices and changes in the amounts being produced. neither changes in prices nor changes in the amounts being produced.

Answers

Answer:

Only changes in the amounts being produced  is the correct answer to this question.

Explanation:

Real GDP is the value of goods and services at base year prices so real GDP changes reflect changes in the amounts produced in the economy.

Effective gross domestic product ( GDP) is an inflation-adjusted indicator representing the cost of the goods and economic resources by a nation in a given year (demonstrated in foundation-year prices) and is often referred to as "current prices," "corrected deflation," or "constant currency" GDP.

Final answer:

Changes in real GDP reflect both changes in prices and changes in the amounts being produced.

Explanation:

Changes in real GDP reflect both changes in prices and changes in the amounts being produced. Real GDP is a measure of the total value of goods and services produced in an economy adjusted for inflation. As prices increase, the value of goods and services produced will also increase, resulting in a higher real GDP. Similarly, when more goods and services are produced, real GDP increases as well.

Learn more about GDP here:

brainly.com/question/33845740

#SPJ6

A company has the following balances on December 31, 2021, after year-end adjustments: Accounts Receivable = $62,300; Allowance for Uncollectible Accounts = $6,500.Calculate the net realizable value of accounts receivable t realizable

Answers

Answer:

$55,800

Explanation:

The computation of the net realizable value of accounts receivable is shown below:

Net realizable value of account receivable = Account receivable - Allowance for Uncollectible Accounts

= $62,300 - $6,500

= $55,800

By deducting the allowance for uncollectible accounts from the account receivable so that the net realizable value of the account receivable

A firm facing a price of $15 in a perfectly competitive market decides to produce 100 widgets. If its marginal cost of producing the last widget is $12 and it is seeking to maximize profit, the firm should

Answers

Answer:

Produce more widgets.

Explanation:

Given the price charge by the competitive firm is = $15

The unit produced = 100

The marginal cost of the last unit =  $12

The firm should produce more widget because in the competitive market the firm charge the price that is equal to MC. Moreover, in the given question the price is greater than the marginal cost. Therefore, the firm should produce more widgets in order to reach the condition “P=MC”.

Many people have argued that the skills needed to be successful in today's workforce have changed. What skills do you feel an individual needs to be successful in a job today? Why do you feel these skills are most important? In an essay to be read by your instructor, identify the skills you feel are most needed by an individual to be successful at work and provide reasons to persuade your instructor that these are the most critical skills for success.

Answers

Technical skills are really essential. But upon technical skill, soft skills are mandatory to have a successful career.

Explanation:

Communication: The most important to covey from low level to high level and vice-versa.

Leadership skill: The see the growth visibly. An essential skill for both employer and employee.

Crisis management: Employee should possess this skill to handle challenging situation

Negotiation: Which is really important both for work life and personal life. This is required in all the levels of hierarchy.

Collaboration: Required to work as a team

Problem-solving: The skill which would be tested in various interviews in all the levels.

Proceeds from Notes Payable On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 60-day note with a face amount of $100,000. Assume a 360-day year.
Required:
a. Determine the proceeds of the note, assuming that the note carries an interest rate of 6%.
b. Determine the proceeds of the note, assuming that the note is discounted at 6%.

Answers

Answer:

A. $100,000

B.$99,000

Explanation:

A. Calculation for Determining the proceeds of the note, assuming that the note carries an interest rate of 6%

Based on the information given the note is not discounted which means the face value is equal to the proceeds of $100,000

Hence,

Face value = Proceeds of $100,000

Therefore the proceeds of the note, assuming that the note carries an interest rate of 6% will be $100,000

b. Calculation for Determining the proceeds of the note, assuming the note is discounted at 6%

First step is to find the discount

Using this formula

Discount = Face value amount x Discount rate x (term of note / 360)

Let plug in the formula

Discount= $100,000 x .06 x 60/360

Discount =$360,000/360

Discount= $1,000

Second step is to calculate for the Proceeds

Calculation for the Proceeds

Using this formula

Proceeds = face amount – discount

Let plug in the formula

Proceeds=$100,000 – $1,000

Proceeds= $99,000

Therefore the proceeds of the note, assuming that the note is discounted at 6% will be $99,000

Due to a number of lawsuits related to toxic wastes, a major chemical manufacturer has recently experienced a market reevaluation. The firm has a bond issue outstanding with 15 years to maturity and a coupon rate of 8 percent, with interest being paid semiannually. The required simple rate of return on this debt has now risen to 16 percent. What is the current value of this bond? (Round the answer to the nearest whole number.)​

Answers

Solving a question by financial calculator method. I am using (Texas Instruments BA II plus)

The answer is Current value = $550

First, since it is Semiannual coupon, then we adjust the interest rate to semi-annual rate and also that multiply by 15 years by 2 since we have 2 semi annual periods per year.

Current value

Also Note that: If using the same calculator as me, key in the numbers first before the function .

Then the Total duration of investment ;N is = 15 * 2 = 30

Then Interest rate; I/Y = 16% / 2 = 8%

After that the Face value; FV = 1000

Now the Semi annual Coupon Payment ; PMT = (8%/2)*1000 = 40

then CPT PV = $549.689

Thus,  the current value of this bond is $550 (rounded to whole number.)

Find out more information about current value here:

brainly.com/question/25806984

Answer:

Current value = $550

Explanation:

You can solve this question using a financial calculator. I am using (Texas Instruments BA II plus)

First, since it is Semiannual coupon, adjust the interest rate to semi-annual rate and multiply  15 years by 2 since we have 2 semi annual periods per year.

Note: If using the same calculator as me, key in the numbers first before the function .

Total duration of investment ;N = 15 * 2 = 30

Interest rate; I/Y = 16% / 2 = 8%

Face value; FV = 1000

Semi annual Coupon Payment ; PMT = (8%/2)*1000 = 40

then CPT PV = $549.689

Therefore the current value of this bond is $550 (rounded to whole number.)