At the beginning of the year, Penman Company had the following account balances. Accounts receivable $249,200...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
At the beginning of the year, Penman Company had the following account balances. Accounts receivable $249,200 Allowance for uncollectible accounts 14,990 During the year. Penman's credit sales were $1,405,600, and collections on accounts receivable were $1.374,100. The following additional transactions becurred during the year. Feb. 17 Wrote off Bava's account. $5,740. May 28 Wrote off Reed's account, $3,360. Dec. 15 Wrote off Fischer's account, $1,610. Dec. 31 Recorded the bad debts expense assuming Penman's policy is to record bad debts expense as 0.9% of credit sales. (Hint: The allowance account is increased by 0.9% of credit sales regardless of write-offs.) Compute the ending balances in accounts receivable and the allowance for uncollectible accounts and show how Penman's December 31 balance sheet reports the two accounts. Note: Round your answers to the nearest whole dollar. Note: Do not use a negative sign with your answers. Current Assets Accounts receivable Less allowance for uncollectible accounts 0 05 0 At the beginning of the year, Penman Company had the following account balances. Accounts receivable $249,200 Allowance for uncollectible accounts 14,990 During the year. Penman's credit sales were $1,405,600, and collections on accounts receivable were $1.374,100. The following additional transactions becurred during the year. Feb. 17 Wrote off Bava's account. $5,740. May 28 Wrote off Reed's account, $3,360. Dec. 15 Wrote off Fischer's account, $1,610. Dec. 31 Recorded the bad debts expense assuming Penman's policy is to record bad debts expense as 0.9% of credit sales. (Hint: The allowance account is increased by 0.9% of credit sales regardless of write-offs.) Compute the ending balances in accounts receivable and the allowance for uncollectible accounts and show how Penman's December 31 balance sheet reports the two accounts. Note: Round your answers to the nearest whole dollar. Note: Do not use a negative sign with your answers. Current Assets Accounts receivable Less allowance for uncollectible accounts 0 05 0
Expert Answer:
Answer rating: 100% (QA)
To compute the ending balances in accounts receivable and the allowance for uncollectible accounts w... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
ANIMAL SCIENCE FEEDSCALCULATIONS: 1.After learning the concepts of drymatter and as fed, you realize you have been spending a lot ofmoney on canned dog food and want to switch to dry food for...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Consider the following population regression model: y = Bo + Bx + Bx2 + 3x3 + u Suppose you want to test whether 0.532 = 83. The hypotheses are: Ho : 0.582 = 33 H : 0.532 #33 The correct expression...
-
A cluster of loads is served by a balanced three-phase source with a line voltage of 4160 V rms. Load 1 is 240 kVA at 0.8 pf lagging and load 2 is 160 kVA at 0.92 pf lagging. A third load is unknown...
-
Though the McDonalds (MCD) menu of hamburgers, cheeseburgers, the Big Mac, Quarter Pounder, Filet-O-Fish, and Chicken McNuggets is easily recognized, McDonalds financial statements may not be as...
-
Describe the photic zone of ocean habitats.
-
Big Steves, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $100,000 and will generate net cash inflows of...
-
Suppose there are two possible states of nature, good and bad, and a consumer has utility u(cg, c) = ln(c) + In(c). The consumer endowment is mg = 10 in the good state and m = 1 in the bad state, and...
-
B. Unity of Roots 2 1. z = 12i 4 2. z* = -2 5i 3. z=(-3+2i)
-
Since it was a nice day Leilani decides to go on a hiking trip. If she can average two miles per hour uphill and six miles per hour downhill. Going uphill and down, and if she spends no time at the...
-
Capital Structure Problem Cerberus Holdings currently has $6.5 million in debt and $9.0 million in equity. Cerberus' beta is 1.27, their weighted average cost of capital is 7.75%, and their statutory...
-
Consider a signal that takes on discrete odd integer values with a total of 8 symbols being formed. The sequence is Sk = {-7A, -5A, -3A, -A, A, 3A, 5A, 7A). Each value in the set has an equal...
-
Consider a thin hoop and a uniform cylinder of equal mass and radius competing in a race down a ramp. a. Write a general formula for the conservation of energy for both items. b. Determine the...
-
How do neurotransmitters and neuromodulators regulate synaptic transmission and neuronal plasticity, and how are disruptions in these processes implicated in neurological disorders?
-
Write a program that sets up a chess board with chess pieces, and lets people make moves (of one piece at a time) on the chess board. Here are the details: The chessboard is an 8x8 board. Display the...
-
10m solution. If Ka(HA) = 10 then pOH of solution will be [Given : log4=0.6] (A) 6.7 (B) Greater than 6.7 & less than 7.0 (C) Greater 7.0 & less than 7.3 (D) Greater than 7.3
-
In 2012 the Moncrief Company purchased from Jim Lester the right to be the sole distributor in the western states of a product called Zelenex. In payment, Moncrief agreed to pay Lester 20% of the...
-
Walmart offers its employees a variety of share-based compensation plans including stock options, performance share awards, and restricted stock. The following is an excerpt from a disclosure note...
-
On January 2, 2013, Sanborn Tobacco, Inc., bought 5% of Jackson Industry's capital stock for $90 million as a temporary investment. Sanborn realized that these securities normally would be classified...
-
On a low-friction track, a \(0.66-\mathrm{kg}\) cart initially going at \(1.85 \mathrm{~m} / \mathrm{s}\) to the right collides with a cart of unknown inertia initially going at \(2.17 \mathrm{~m} /...
-
Picture two objects, A and B, taking part in some interaction involving gauge particles. If object A radiates gauge particles uniformly in all directions, how does the strength of the interaction...
-
A railroad car that has an inertia of \(5.04 \times 10^{4} \mathrm{~kg}\) is moving to the right at \(4.25 \mathrm{~m} / \mathrm{s}\) when it collides and couples with three identical railroad cars...
Study smarter with the SolutionInn App