At the end of an accounting period, a company has $ 4,000,000 recorded in accounts receivable, all from sales. It is not likely that the company will collect all of the $ 4,000,000, even though all the sales really took place. Give three reasons that collections might not equal $ 4,000,000.
Answer to relevant QuestionsIt sometimes happens that a receivable that has been written off as uncollectible is subsequently collected. Describe the accounting entries in such an event. Compute the present value of a $ 20,000, one- year note payable that specifies no interest, although 10% would be a realistic rate. What is the true amount of the principal and interest?(SGI) owns and operates a chain of six grocery stores located through-out Nova Scotia. The stores are located in rural communities and SGI’s head office is located in Halifax. Because SGI stores provide jobs within small, ...The net accounts receivable on the books of GJY Corporation as of 1 January 20X3 are as follows:Accounts receivable .......... $ 562,000 Less: Allowance for sales discounts.... 12,000 Allowance for doubtful accounts.... ...The following two cases are independent: Case A Appa Apparel manufactures fine sportswear for many national retailers and frequently sells its receivables to financing companies as a means of accelerating cash collections. ...
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