2) Actual uncollectibles are debited to Allowance for Doubtful Accounts and credited to Accounts Receivable at the time a specific account is written off. Principle of conservatism recommended that assets should be neither overstated nor understated. Number of Days Outstanding 0-30 31-60 61-90 Over 90. FRN Inc. IMM Ltd. DRX Co. MGH Corp. (b) Oct. $9, 000 x 5.
14, 15, 16, 17 18, 19, 20, 21, 22. Solutions Manual 8-84 Chapter 8 Copyright © 2009 John Wiley & Sons Canada, Ltd. CHAPTER 8 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE Study Objectives 1. In this case notes receivable due in three months would be disclosed first followed by net accounts receivables (accounts receivable less the allowance for doubtful accounts) and finally other receivables which would include sales taxes recoverable and income taxes receivable. Balance before adjustment [see (b)]...................... Balance needed [$800, 000 x 6%]............................ The advantages of allowing customers to use credit cards include making the purchase easier for the customer, potentially increasing sales, as customers are not limited to the amount of cash in their wallet, and reducing the accounts receivable you have to manage if credit cards are used instead of granting credit to customers. An increase in the receivables turnover indicates faster collection of receivables and a decrease in the collection period. Accounting principles third canadian edition chapter 8 answers.microsoft. Bad Debts Expense [2. Sales...................................... 30 Accounts Receivable [$1, 000 - $38]............................. Credit Card Expense [$1, 000 x 3. A note usually bears interest for the entire period. SOLUTIONS TO EXERCISES EXERCISE 8-1 Apr. The two approaches of estimating uncollectibles under the allowance method are (1) percentage of sales (income statement approach) and (2) percentage of receivables (balance sheet approach). Average collection period.
25%)................................... 24, 375 Allowance for Doubtful Accounts......... 24, 375. Accounting principles third canadian edition chapter 8 answers.unity3d. Accounts and notes receivable are sometimes called trade receivables because they result from sales transactions and occur in the normal course of business operations. A company may prefer a note receivable because it gives a stronger legal claim to assets and normally includes interest. 59, 700 15, 300 Dr. 30, 000 14, 700. If there is no hope of collection, the payee could write-off the note.
3) Other receivables include interest receivable, loans or advances to employees, and recoverable sales and income taxes. 75% x 1/12 = 105 $ 9, 000 x 4. The bad debts expense reflects only the current year's estimates while the allowance is a result of estimates and write-offs over many years. 2008 May 11 Allowance for Doubtful Accounts..... Accounts Receivable–Worthy....... 10, 000. From the income statement perspective, adjusting entries allow the correct expenses to be subtracted from revenue, which produces a correct net income. 1 Notes Receivable............................... Accounts Receivable..................... 9, 000 9, 000. Proust Company's growth rate should be a product of fair and accurate financial statements. ASSIGNMENT CHARACTERISTICS TABLE Problem Number 1A. Bad debt (d) 38, 400 End. BRIEF EXERCISE 8-7 Number of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days Total. C) Interest 2008 $16, 000 x 7. Accounting principles third canadian edition chapter 8 answers key. 1 Cash.................................................... Interest Receivable........................ Accounts receivable transactions.
Bad Debts Expense (f) 25, 150 Allowance for Doubtful Accounts....... Accounts Receivable (b)................. 21, 550. BYP 8-4 (Continued) The selling staff has been placed in a conflict of interest position. 7 Credit Cards Receivable........... Oct. 13 Allowance for Doubtful Accounts..... Notes Receivable—Tritt Inc.......... Date July 1 1 31 31. Legal Notice Copyright. The longer a customer takes to pay, the more likely that he will default on the receivable. PROBLEM 8-10B (a) TOCKSFOR COMPANY Balance Sheet (Partial) September 30, 2008 (in thousands) Assets Current assets Cash and cash equivalents.......................................... $ 787. Bad debts expense Balance August 31.................................................. $ 85, 680 September entry...................................................... 10, 743 October entry........................................................... 26, 286 Total expense for the year...................................... $122, 709. 1 Notes Receivable–Jones................... 10, 500 Accounts Receivable—Jones....... June 30 Interest Receivable............................. Interest Revenue [$10, 500 x 5% x 4/12]..................... July 1.
Under the percentage of sales approach the amount estimated is the bad debts expense and this is the amount of the entry—no reference is made to the existing balance in the allowance. Amount $120, 000 32, 000 45, 000 78, 000 $275, 000. To keep financial statements relevant, IFRS allow assets to be revalued at some point after purchase in order to reflect fair market values. While it is in their best interest to stimulate sales, this may deter them from performing adequate credit checks. 2, 400 2, 400 1, 550. 32, 700 26, 700. Credit Cards Receivable Explanation Ref. Interest receivable reported under the current asset section of the balance sheet total $3, 251 calculated as follows: Note 1. Broadening Your Perspective. An increase in the current ratio normally indicates an improvement in short-term liquidity. You will also have to pay to rent the equipment. 23 days The company's receivables turnover and collection period have improved marginally since the previous year. The interest previously accrued on this note should be written off, as well as the note itself.
This method emphasizes the matching of expenses with revenues. Interest Revenue $15, 000 x 4.
Celebrate your birthday with enthusiasm, gather your loved ones around you, cut the cake, and reminisce about the good times you had. I want to dance on the table. For all the things I did for you, I must say I'm very sorry. Because we are still family. It's odd how we live our separate lives now. I hope anyone that fell in love like us will survive the unimaginable. I want to congratulate you, birthday boy, I won't kiss you on the lips, but on the cheek - perhaps I'll kiss you! Happy birthday ex-husband, may every wish you have ever made finally come true this day. You are my ex-husband and I know you will have a great time celebrating your birthday, I have known you for so long and being a part of this day is a blessing. Let it not work out with you. Let bad weather bypass you. 5) The father of my own kids can never be my foe.
If my ex updated their status and said: "I'm on the edge of a cliff". I have long let go of my resentment for you because I love to be free from hatred, enjoy today. Happy Birthday Ex – boo.
May God's blessings be upon you, my old sweetheart. It still feels funny that we have gone our separate lives now, but I want to wish you the best birthday. I'm okay with what occurred between us; the divorce wasn't the end of us; rather, it was the start of something bigger; happy birthday, my ex-husband. You did not expect me to be sorry and care but I always did. I am glad that we both are parents to our children. I wish you genuine happiness, love and peace today and the years to come. Let us move on and just wish pleasantries to one another. I wish you find the one that makes you smile even more than I made you smile. You are no longer mine but you will forever remain in that space, I hope one day you will not just occupy the space in my heart but also physically do so. I'm sorry for everything I never had time to apologize for. I just miss those memories. I do not believe that we would never be friends and will remain resentful to each other.
Wishing you a Happy birthday, ex-husband; may everything go as planned, that you have fun, and that you mature gracefully. Ageing is the most hated side effect of Birthday. Be happy, of course, my ex-husband! Greetings on your special day!
Grapes equals- I miss you, flowers equal let's meet so what are we waiting for let's do Grapes and flower. Can you make these wishes for me? I'm hoping you'll fall in love again. Your words, oaths, promises and vows all were fake like you, you spoiled my life. In between separation and clash, I will wish you a happy and no-regrets birthday.
It's really shameful to be without a help mate. You were someone that I have prayed for. Whatever we've had had is now in the past. But we're no longer together; just return my love to me. May this day be a wonderful celebration of love, peace and happiness. I'm not going to be angry, and I'm not going to try to avenge myself; instead, I will focus on my success and make it my top priority; I hope you do the same. The fact that things didn't work out doesn't mean I stopped loving you; in fact, moving on was difficult, but I'm much better today. It could have been wonderful to know that you have someone to be with through your ups and down and even in between. 24) Despite the fights, despite the legal battles, the father of my children deserves a warm greeting on his birthday. Now I realize it was the best thing you ever did for me. But I'll never despise you again. He was valued, cherished, always called him home. It is when I realized that not everything is meant to be no matter how we wish for.
Get a personalized birthday video greeting from the President. I couldn't get the image of your smile out of my head since it was so deeply embedded in my subconscious thought. Hearty birthday wishes to you on this day. Why were you even born my ex-husband? There are many bright encounters in life. I hope I'll be able to meet in the future someone half as good as you are. And be always kept by God. Let's forget and forgive what is in the past because it is until then that we are truly healed.