A fire during 2014 destroyed most of the accounting records of Clearview Cablevision, Inc. The only accounting
Question:
A fire during 2014 destroyed most of the accounting records of Clearview Cablevision, Inc. The only accounting data for 2014 that Clearview can come up with are the following balances at December 31, 2014. The general manager also knows that bad-debt expense should be 5% of service revenue on credit.
Accounts receivable, December 31, 2014................ $180,000
Less: Allowance for bad debts.................................(22,000)
Total expenses, excluding bad-debt expense............670,000
Collections from customers..................................... 840,000
Write-offs of bad receivables................................... 30,000
Accounts receivable, December 31, 2013................ 110,000
Prepare a summary income statement for Clearview Cablevision, Inc., for the year ended
December 31, 2014. The stockholders want to know whether the company was profitable in 2014. Use a T-account for Accounts Receivable to compute service revenue. Assume that all revenues are on credit.
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Clearview Cablevision Inc Summary Income Statement Year Ended December 31 2014 S...View the full answer
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
