Use PVH Corp's financial statement information to answer the following questions. a. Provide the following account...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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.
Expert Answer:
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
Posted Date:
Students also viewed these accounting questions
-
Use the diagram to answer the following questions (ad). a. At the equilibrium price before the tax is imposed, what area represents consumer surplus? What area represents producer surplus? b. Say...
-
Use the CCH IntelliConnect Citator to answer the following questions regarding Notice 2010-10: a. Where is the notice located in the Internal Revenue Bulletin? b. Where is the notice annotated? c....
-
Use the CCH IntelliConnect Citator to answer the following questions regarding the 19th revenue procedure of 2002: a. What does this procedure address? Which Code sections are involved? b. What is...
-
Identify each of the equations as representing either a circle, a parabola, an ellipse, a hyperbola, or none of these. (x + 1) 2 + (y + 1) 2 = 2(x + y + 1)
-
Strassner Corporation factors $262,500 of accounts receivable with Sultanali Financing, Inc. on a with recourse basis. Sultanali Financing will collect the receivables. The receivables records are...
-
Use the integral table to find Then store into Y1 and into Y2 using the bold graphing style. Graph both functions using the modified window [3.7, 5.7]1 by [2, 2]1. Verify that F(x) = f (x) for x =...
-
What are the two possible translation processes that may be necessary to translate a foreign operations financial statements?
-
Fallsview Glatt Kosher Caterers ran a business that provided travel packages, including food, entertainment, and lectures on religious subjects, to customers during the Passover holiday at a New York...
-
6. To a ground observer the block C is moving with v, and the block A with v. B is moving with v relative to C as shown in the figure. Identify the correct statement. (a) V-V =Vo (b)= A C B (c) V+V =...
-
As Lush UK implemented the change, how could it measure the effects of leaving and then returning to social media on the achievement of its marketing goals? Lush Fresh Handmade Cosmetics UK sells...
-
Opine on identified cash management conditions where use of cash is needed prior to payment from the client. Name three conditions where this is possible and provide examples of how and why paying...
-
A proton is initially at rest. After some time, a uniform electric field is turned on and the proton accelerates. The magnitude of the electric field is 1 . 5 6 1 0 5 N / C . ( a ) What is the speed...
-
Five years ago, Weisu bought an 8-year, 7% semi-annual coupon bond. Face Value= 1000. If the yield to maturity (compounded semi-annually) is 5.5%, what is the bonds duration today? What does this...
-
Investment A will make a payment of $1200 every 3 years for the next six years while Investment B will make payments of $120 every six months until perpetuity. Which investment is more valuable if...
-
In an amplified circuit, the current i (in A) changes with time t (in s) according to the equation below. If 0.085 C of charge has passed a point in the circuit at t=0, find the total charge to have...
-
If you were looking through stock listings and saw the following stock quote for XYZ Ltd, what would you take note of as being the bid price ?
-
The market expects that Acme Corporation will have $4.00 in earnings per share and pay a dividend per share of $1.50 in one year. Its return on equity (ROE) is expected to remain constant at 8%. If...
-
Does log 81 (2401) = log 3 (7)? Verify the claim algebraically.
-
How does the single-step statement of income differ from the multi-step statement of income? Do they produce different net income amounts? Explain.
-
Clean Sweep Ltd. manufactures several different brands of vacuum cleaners, from hand-held models to built-in central vacuums. It sells its products to distributors on credit, giving customers 30 days...
-
Note 19 to the 2013 financial statements of Cineplex Inc., dealing with employee future benefits, is presented in Exhibit 10-13 (amounts in thousands of dollars). Required: a. What types of pension...
-
Given the four criteria necessary for a sale to be complete, which of the following is not one of those conditions? 1. Delivery has occurred or services rendered. 2. Cash has been collected. 3. The...
-
What is the difference between a business and a pure charity? Between a business and a governmental agency?
-
What is an integrated delivery system?
Study smarter with the SolutionInn App