5% x 3/12] 25 Notes Receivable—Avery.................. Accounts Receivable—Avery........ 6, 000. 2 Property, plant and equipment Equipment................................................... $2, 310. A company, such as Canadian Pacific, may chose to securitize its receivables to accelerate cash receipts from their receivables. The fee is not large but is an ongoing expense.
Solutions Manual 8-84 Chapter 8 Copyright © 2009 John Wiley & Sons Canada, Ltd. 17, 800 6, 300 6, 300. Accounting principles third canadian edition chapter 8 answers.unity3d. The percentage of receivables approach is called the balance sheet approach because the calculation and the required balance in the allowance for doubtful accounts are based on a percentage of outstanding accounts receivable; both are amounts that appear on the balance sheet. C) Interest 2008 $16, 000 x 7. Record accounts receivable and bad debts transactions. Included in the other assets section of the balance sheet will be the $100, 000 note receivable.
Operating cycle has improved from 118. 7 Credit Cards Receivable........... BRIEF EXERCISE 8-4 Nonbank credit card: July 11. Credit Card Expense [$200 x 3%]...... Accounts Receivable [$200 - $6]....... The write-off of an uncollectible account does not affect the current year's bad debts expense (debit the allowance and credit the accounts receivable). 59, 700 15, 300 Dr. 30, 000 14, 700. PROBLEM 8-9B (Continued) (c) Notes Receivable Explanation Ref. Overall, Western Roofing's liquidity has improved over the three year period. Current Ratio: 2004: $1, 710 ÷ $2, 259 = 0. Accounting principles third canadian edition chapter 8 answers.yahoo. The Credit Card Expense and Debit Card Expense accounts are reported as operating expenses on the income statement. EXERCISE 8-7 (Continued) Dec. 31 Interest Receivable............................. Interest Revenue*.......................... *Calculation of interest revenue: Morgan: $24, 000 x 8% x 2/12 Wright: $4, 500 x 6% x 1/12 Barnes: $8, 000 x 7% x 0.
Adjustment required............................................... $14, 700 48, 000 $33, 300. Estimated Uncollectible $ 2, 055 3, 660 6, 840 9, 600 $22, 155. Collection period Days sales in inventory Operating cycle (b). 6 = 48 days 50 + 48 = 98 days. Allowance for Doubtful Accounts Explanation Ref. 7 = 42 days 365 ÷ 8. 5 Other assets Notes receivable........................................................... 254. CHAPTER 8 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE Study Objectives 1. 18, 000 11, 500 Dr. Accounting principles third canadian edition chapter 8 answers.com. 3, 500 8, 000 Dr. 24, 375 16, 375. The longer a customer takes to pay, the more likely that he will default on the receivable.
Stewart Department Store Credit Card: July 11. The most significant increase occurred in over 90 day balances where estimated uncollectibles rose from $9, 600 to $31, 200. Oct. 13 Allowance for Doubtful Accounts..... Notes Receivable—Tritt Inc.......... Accounting for the disposition of a note receivable and an account receivable are the same. To keep financial statements relevant, IFRS allow assets to be revalued at some point after purchase in order to reflect fair market values. However, the increase in receivables may be due to slower collections rather than improved sales.
Q8-5 Q8-7 Q8-8 Q8-9 Q8-12 Q8-13. 3, 200, 000 50, 000 3, 000, 000 90, 000 18, 000 18, 000. Brief Exercises Exercises. Account receivable results from a credit sale while a note receivable can result from financing a purchase, lending money, or extending an account receivable beyond normal amounts or due dates. Average collection period Industry: 50 days. The bad debts expense on the income statement would be $18, 000 (2.
This could be attributed to Suncor's securitization program. 570 75 380 348 299 100. The journal entry would therefore be as follows: Dec. 31. 5/12 Total accrued interest. BYP 8-3 COLLABORATIVE LEARNING ACTIVITY All of the material supplementing the collaborative learning activity, including a suggested solution, can be found in the Collaborative Learning section of the Instructor Resources site accompanying this textbook. PROBLEM 8-8A (Continued) (a) (Continued) Nov. 22 There would probably be no entry made on November 22. 47, 750 66, 830 71, 280 1, 700 46, 018. The decision to write-off an account simply identifies which accounts are not going to be collected. 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.
It would appear that Forzani's is managing their inventory more efficiently which has resulted in the decrease in number of days to sell inventory and overall operating cycle. 0-30 31-60 $220, 000 $160, 000. 5% x 7/12 = $700 $40, 000 x 8. Adidas' receivables turnover ratio was a little higher than Nike's, which means that Adidas was more efficient than Nike in turning receivables into cash. 8 days 365 ÷ 7 = 52.
Debit Credit Balance Opening Balance Bad debts expense Recovery Write-offs Bad debts expense. Date Jan. 1 1 2 3 4 5 5. 1 Notes Receivable............................... Accounts Receivable..................... 9, 000 9, 000. 380 100 Andrew Noren Ref. To improve this process I would recommend using a separate credit department to evaluate the credit worthiness of all potential credit customers. 10, 11, 12, 13 13, 14, 15.
Debit Opening Balance Sales Returns Collections Interest charges. BRIEF EXERCISE 8-15 Receivables turnover $6, 462, 581 ÷ [($247, 014 + 292, 462) ÷ 2] = 23. Accounts Receivable......................... 12, 070 Interest Revenue............................ Bad debts expense............................. 26, 286 Allowance for Doubtful Accounts [($718, 970 x 3%) + $4, 717]............. 26, 286. 4 Less: Accumulated amortization............. 1, 144. Date July 1 1 31 31. Notes Receivable............................... 100, 000 Cash................................................ Cash.................................................... Interest Revenue............................ ($100, 000 x 5% x 3/12). Over the past year, the company has noticed a trend whereby the sales have doubled, accounts receivable have quadrupled and cash flow has halved. 31 Interest Receivable....................... 114 Interest Revenue....................... ALD Inc. $ 6, 000 x 6% x 1/12 = $ 30 KAB Ltd. $10, 000 x 5. ASSIGNMENT CHARACTERISTICS TABLE Problem Number 1A. 6 days 365 ÷ 5 = 73 days 45.
When the correct expenses are subtracted from revenue, the result is net income or loss. 2) Actual uncollectibles are debited to Allowance for Doubtful Accounts and credited to Accounts Receivable at the time a specific account is written off. The write-off of an uncollectible account reduces both accounts receivable and the allowance for doubtful accounts by the same amount. Although the outcome could be accomplished with one combined entry, it is best to have separate journal entries for the reversal and subsequent collection. 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. 6, 685 Allowance for Doubtful Accounts [$7, 885 – $1, 200]. The disadvantage of using an aging schedule (as compared to estimating uncollectible accounts as a percentage of total receivables) is it can be time consuming to gather the information if the accounting system that is being used does not calculate an aging of the accounts receivable. After Write-Off $469, 150. The payee still has a claim against the maker of the note for both the principal and the unpaid interest.
The advantage of using an aging schedule to estimate uncollectible accounts is the amount calculated is much more sensitive to the amount of time the receivable has been outstanding. Total interest revenue for the year ended December 31, 2008 - $4, 004 calculated as follows: Note 1. An account receivable does not incur interest unless the account is overdue. Balance before adjustment [see (b)]...................... Balance needed [$800, 000 x 6%]............................ Accounts Receivable $315, 000 90, 000 60, 000 35, 000 $500, 000% Estimated Uncollectible 1% 4% 10% 20%.
Estimated Uncollectible $ 4, 800 3, 420 4, 560 6, 000 $18, 780. The presentation, analysis, and management of receivables.
How to get a plastic bathtub white again? What Causes Bathtub Stains? There's a high probability that some of the yellow stains you see in your bathtub or shower are simply scum left behind from soap, gel, or other products. Use a sponge or cloth to wipe off the excess. Run a Dehumidifier If Ventilation Isn't Great. If you're wanting to give your old bathtub a new lease on life, there are some DIY tips to use to make an oldie look new. For extra cleaning, you can also add baking soda to the solution. They can also be the start of mold colonies in your drain. Let the solution sit for 10 minutes for light stains, or up to 30 minutes for tougher stains. This can be caused by leaks in the roof, windows, or even pipes. These filters reduce calcium and magnesium from water and make it soft and usable. You will, however, be successful in removing the vast majority of ordinary stains if you invest. But if anyone in your home does, it's important to take measures to prevent the nicotine from staining your bathroom ceiling. The white streak discolouration in and around your bathtub are mainly hard water stains and soap scum formed by mineral deposits left behind after water has evaporated.
Due to its gritty texture, you can rub the paste in a circular motion to loosen the discoloration and allow the paste to go deep into set stains. I hope you understand what the primary cause of yellow stains in the bathtub is. And since we use products for bathing ourselves in showers, what if it's a combination of hard water and soaps causing stains on your tile and grout? If your yellow stains are due to nicotine smoke, you'll need to wash the area with a trisodium phosphate solution. Gentle, but powerful, disinfectant. That is occurring on your shower tiles.
Fiberglass is reinforced plastic and is a great budget-friendly option. You can use it to remove yellow stains in bathtubs using one of its features. Bathroom ceilings and walls can develop yellow stains for a variety of reasons, the most common being water damage, mold, and nicotine smoke. Left untreated, mold and mildew can cause serious respiratory problems, so it's important not to ignore the problem if you suspect it. With a little help from Benjamin Franklin Plumbing Bay Area, this do-it-yourself guide provides an effective approach to cleaning a stained tub – so you don't have to think twice before you step into your bubble bath! In the next section, we discuss how you can restore the shiny appearance of your tub with the right products. 1- Use Of Baking Soda. You can also find us in West Palm Beach, FL, where we serve surrounding towns like Boca Raton and Palm Beach Us How We Can Help! The sunlight will not only be the source of Vitamin D, but it's also helpful for maintaining moisture in the bathroom.
When shower tiles or wash-hand basins start to turn yellow, the problem could be caused by a variety. By now, you can tell that many things can contribute to stone, tile, and grout turning yellow, orange, brown, or whatever color of the rainbow. Restoring shower tiles to their previous color and luster can take weeks or months. Check the water's appearance. If your home has an acrylic tub that has a stain or two, try applying a mixture of water and vinegar to the affected area. Of factors, including an accumulation of body oil, colorful dyes in the water supply, an excessive amount of iron, or even the residue of tobacco smoke.
How Do You Clean a Badly Stained Bathtub? Your tub's bottom will become yellow after your bath if you don't do this. These are the things that can cause your shower tray turning yellow: Dyes. Nobody wants to bathe in a rusty bathtub. You'll need to take some time to sit down and think about what features are most important to you, as well as how much money you have available to spend and the size of your bathroom. Mix the solution thoroughly until it forms a thick paste and scrub the stained area with a nylon sponge. Hard water usually causes lime stains on bathtubs; these stains get harder with time. Lysol with Hydrogen Peroxide Multi-Purpose Cleaner. 5- Humidity In Bathroom. Now take a clean cloth and scrub it on stains until they disappear.
Microban 24 Bathroom Cleaner and Sanitizing Spray. Drinking hard water or water contaminated by tannins poses no health risks to your body. They don't realize the yellowing will likely continue unless they find the cause.