Question : 140. Financial Statement data for the years ended December 31 for : 1227239

 

140. Financial Statement data for the years ended December 31 for Parker Corporation is as follows:      2012      2011Net Sales        $2,595,600      $2,409,500Accounts ReceivableBeginning of the year      $  390,000            $400,000End of the year      434,000            390,000a)  Determine the accounts receivable turnover for 2012 and 2011.b)  Determine the number of days’ sales in receivables for 2012 and 2011.c)  Does the change in accounts receivable turnover and number of days’ sales in receivables from 2011 to 2012 indicate a favorable or unfavorable trend.? 

 

141. Journalize the following transactions for Solley Company that occurred during 2011 and 2012.November 14, 2011  Received a $4,800.00, 90-day, 9%  note from Alan Hibbetts in payment of his account.December 31, 2011  Accrued interest on the Hibbetts note.February 12, 2012  Received the amount due from Hibbetts on his note. 

Date

Description

Post Ref

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

142. For each of the following notes receivables held by Rogers Company determine the interest revenue to be reported on the income statements for 2011 and 2012.  Round answers to nearest whole dollar. 

Date

Face

Rate

Time

2011 Interest Revenue

2012 Interest Revenue

Aug 8, 2011

$15,000

7%

180 days

 

 

Oct 7, 2011

$22,000

8%

60 days

 

 

Jan 6, 2012

$30,000

8%

90 days

 

 

Nov 12, 2011

$28,000

9%

60 days

 

 

 

 

 

 

 

 

 

 

*15,000 X .07 X 145/360 = 423 (rounded)** 15,000 X .07 X 180/360 = 525 – 423 = 102

 

143. a)  The aging of Torme Designs shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible.

 

Est Uncollectible Accts

Age Interval:

Balance:

Percentage:

Amount:

Not past due

850,000

3.50%

 

1~30 days past due:

47,500

5.00%

 

31~60 days past due:

21,750

10.00%

 

61~90 days past due:

11,250

20.00%

 

91~180 days past due:

5,065

30.00%

 

181~365 days past due:

2,500

50.00%

 

Over 365 days past due:

1,145

95.00%

 

Total:

939,210

 

 

 

 

 

 

b)  If the Allowance for Doubtful Accounts has a credit balance of $1,135.00,  record the adjusting entry for the bad debt expense for the year. 

 

 

144. For each of the following scenarios, indicate the Bad Debt Expense to be recorded in 2011, the balance in the Allowance for Doubtful Accounts Account at December 31, 2011, and the net realizable value of the Accounts Receivable at December 31, 2011:a)  An analysis of  Simmon’s Company’s $830,000 balance in Accounts Receivable at December 31, 2011,  indicates $15,500 of uncollectible receivables.  Before adjustment the balance in Allowance for Doubtful Accounts is a credit balance of $1,200.  b) Blake Company had net credit sales of $900,000 during 2011, and has an Accounts Receivable balance of $425,000 at December 31, 2011, and an Allowance for Doubtful Accounts credit balance of $8000.  Blake estimates Bad Debt Expense as 3/4 of 1% of net credit sales.  c)  Hidgon Inc. has a balance of $312,000 in Accounts Receivable at December 31, 2011.  An analysis of those receivables shows $2400 will probably not be collected.  Before adjusting entries are prepared, the Allowance for Doubtful Accounts has a debit balance of $750.