Use PVH Corp's financial statement information to answer the following questions. a. Provide the following account...
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Use PVH Corp's financial statement information to answer the following questions. a. Provide the following account balances for PVH (4 points): January 30, 2022 January 31, 2021 Accounts Receivable (gross) Allowance for Doubtful Accounts Accounts Receivable, net b. Which of the above numbers represents the amount that PVH expects to collect from its customers as of January 30, 2022? (1 point) c. Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of January 30, 2022? (1 point) d. Which of the above numbers represents the total amount PVH is owed by customers as of January 30, 2022? (1 point) e. Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2021. (3 points) f. Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2021. (3 points) ASSETS As of Jan. 30, 2022 As of Jan. 31, 2021 Cash and cash equivalents $ 1,243 $ 1,651 Accounts receivable, net of the allowance of $62 million as of 1/30/2022 and of $70 million as of 1/31/2021 745 642 Inventories 1,349 1,417 Prepaid expenses and other current assets 317 234 Total current assets $ 3,654 $ 3,944 Notes to Consolidated Financial Statements (partial) Footnote 1. Summary Of Significant Accounting Policies 1.1. Description of Business PVH Corp. constitute a global apparel company with a brand portfolio that includes TOMMY HILFIGER, Calvin Klein, Warner's, Olga, and True&Co., which are owned, Van Heusen, IZOD, ARROW, and Geoffrey Beene, which the Company owned through the second quarter of 2021 and now licenses back for certain product categories, and other licensed brands. The Company designs and markets branded sportswear (casual apparel), jeanswear, performance apparel, intimate apparel, underwear, swimwear, dress shirts, neckwear, handbags, accessories, footwear and other related products and licenses its owned brands globally over a broad array of product categories and for use in numerous discrete jurisdictions. 1.3. Fiscal Year 1.3. Fiscal Year The Company uses a 52-53 week fiscal year ending on the Sunday closest to February 1. Results for fiscal years 2021, 2020 and 2019 represent the 52 weeks ended January 30, 2022, January 31, 2021 and February 2, 2020, respectively. 1.7. Accounts Receivable An allowance for doubtful accounts is is determined through an analysis of the aging of accounts receivable and assessments of collectability based on historical trends, the financial condition of the Company's customers and licensees, including any known or anticipated bankruptcies, and an evaluation of current economic conditions as well as the Company's expectations of conditions in the future. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. The allowance for doubtful accounts was $62 million on January 30, 2022 and $70 million on January 31, 2021, respectively. The Company recorded Bad Debt Expense of $4 million in fiscal year 2021 and $58 million in fiscal year 2020. The Company wrote off $12 million of accounts receivable in fiscal year 2021 and $9 million of accounts receivable in fiscal year 2020. Use PVH Corp's financial statement information to answer the following questions. a. Provide the following account balances for PVH (4 points): January 30, 2022 January 31, 2021 Accounts Receivable (gross) Allowance for Doubtful Accounts Accounts Receivable, net b. Which of the above numbers represents the amount that PVH expects to collect from its customers as of January 30, 2022? (1 point) c. Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of January 30, 2022? (1 point) d. Which of the above numbers represents the total amount PVH is owed by customers as of January 30, 2022? (1 point) e. Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2021. (3 points) f. Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2021. (3 points) ASSETS As of Jan. 30, 2022 As of Jan. 31, 2021 Cash and cash equivalents $ 1,243 $ 1,651 Accounts receivable, net of the allowance of $62 million as of 1/30/2022 and of $70 million as of 1/31/2021 745 642 Inventories 1,349 1,417 Prepaid expenses and other current assets 317 234 Total current assets $ 3,654 $ 3,944 Notes to Consolidated Financial Statements (partial) Footnote 1. Summary Of Significant Accounting Policies 1.1. Description of Business PVH Corp. constitute a global apparel company with a brand portfolio that includes TOMMY HILFIGER, Calvin Klein, Warner's, Olga, and True&Co., which are owned, Van Heusen, IZOD, ARROW, and Geoffrey Beene, which the Company owned through the second quarter of 2021 and now licenses back for certain product categories, and other licensed brands. The Company designs and markets branded sportswear (casual apparel), jeanswear, performance apparel, intimate apparel, underwear, swimwear, dress shirts, neckwear, handbags, accessories, footwear and other related products and licenses its owned brands globally over a broad array of product categories and for use in numerous discrete jurisdictions. 1.3. Fiscal Year 1.3. Fiscal Year The Company uses a 52-53 week fiscal year ending on the Sunday closest to February 1. Results for fiscal years 2021, 2020 and 2019 represent the 52 weeks ended January 30, 2022, January 31, 2021 and February 2, 2020, respectively. 1.7. Accounts Receivable An allowance for doubtful accounts is is determined through an analysis of the aging of accounts receivable and assessments of collectability based on historical trends, the financial condition of the Company's customers and licensees, including any known or anticipated bankruptcies, and an evaluation of current economic conditions as well as the Company's expectations of conditions in the future. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. The allowance for doubtful accounts was $62 million on January 30, 2022 and $70 million on January 31, 2021, respectively. The Company recorded Bad Debt Expense of $4 million in fiscal year 2021 and $58 million in fiscal year 2020. The Company wrote off $12 million of accounts receivable in fiscal year 2021 and $9 million of accounts receivable in fiscal year 2020.
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Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
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