Refer to Spin Masters balance sheet and notes in Appendix III. Required Answer the following questions. 1.

Question:

Refer to Spin Master’s balance sheet and notes in Appendix III.

Required

Answer the following questions.

1. The balance sheet shows Trade and other Receivables of $369,719 at December 31, 2017, and $295,068 at December 31, 2016. What type of asset is trade and other receivables? Explain how accounts receivable arise.

2. Refer to the notes. Does the change in receivables appear to correspond to the change in total sales? Explain your answer. What is the allowance for doubtful accounts each year? What is the amount of past due accounts each year? How much was written off each year?

Accounts Receivable
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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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