Question

The Miller Company earned $190,000 of revenue on account during Year 1. There was no beginning...

The Miller Company earned $190,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts. During Year 1, Miller collected $136,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.


What is the net realizable value of Miller's receivables at the end of Year 1?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Sales Revenue

$ 190,000.00

Less: Cash collected

$ 136,000.00

Less: Uncollectable amount ($190000 X 3%)

$      5,700.00

Net Realizable value

$    48,300.00

Question states that uncollectable amount is 3% of sales on account so total sales on account is $190000 and uncollectable amount will be calculated on $190000.

Answer- net realizable value of Miller's receivables at the end of Year 1=$ 48,300

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Miller Company earned $190,000 of revenue on account during 2016. There was no beginning balance...
The Miller Company earned $190,000 of revenue on account during 2016. There was no beginning balance in the accounts receivable and allowance accounts. During 2016 Miller collected $136,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account. The net realizable value of Miller's receivables at the end of 2016 was $54,000. $48,300. $49,920. $59,700.
Johnsen Company earned service revenue on account of $300,000 and had cash collections of $130,000 for...
Johnsen Company earned service revenue on account of $300,000 and had cash collections of $130,000 for the year. During the year, uncollectible accounts receivable of $2,000 were written off. At December 31, an aging-of-accounts receivable schedule indicated that Johnsen Company will not collect $10,000 of accounts receivable. There was a credit balance of $2,100 in the Allowance for Uncollectible Accounts at the beginning of the year. Required: Journalize the entries to record (1) service revenue, (2) cash collections, (3)write-off of...
The following account balances come from the records of Ourso Company: Beginning Balance Ending Balance Accounts...
The following account balances come from the records of Ourso Company: Beginning Balance Ending Balance Accounts receivable $ 2,825 $ 3,907 Allowance for doubtful accounts 127 202 During the accounting period, Ourso recorded $12,700 of sales revenue on account. The company also wrote off a $147 account receivable. Required Determine the amount of cash collected from receivables. Determine the amount of uncollectible accounts expense recognized during the period.
1) On December 31, 2018, Ava Company had an ending balance of $7,356 in its accounts...
1) On December 31, 2018, Ava Company had an ending balance of $7,356 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $143. Ava estimates uncollectible accounts expense to be 9% of receivables. .Based on this information, the amount of net realizable accounts receivable shown on the 2018 balance sheet is $___________ 2) Hope Company’s total assets were $5,107. Hope collected on $529 of account receivable that had previously been written...
The Allowance for Doubtful Account has a $5,500 credit balance prior to adjustment (unadjusted balance). Net...
The Allowance for Doubtful Account has a $5,500 credit balance prior to adjustment (unadjusted balance). Net credit sales during the year are $900,000 and ½ of 3% are estimated to be uncollectible. Accounts Receivable has a balance of $80,000 at the beginning of the year. Determine the net realizable value of the receivables. Show the AFDA account and your calculations, in addition to your answer.
The Manda Panda Company uses the allowance method to account for bad debts. At the beginning...
The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2016, the allowance account had a credit balance of $5,796. Credit sales for 2016 totaled $479,685 and the year-end accounts receivable balance was $40,234. During this year, $5,429 in receivables were determined to be uncollectible and were written off. Manda Panda anticipates that 2% of all credit sales will ultimately become uncollectible. What is the balance in the allowance for bad debts Manda...
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried...
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $63,400 and $1,300, respectively. During Year 2, Kincaid reported $152,000 of credit sales, wrote off $1,200 of receivables as uncollectible, and collected cash from receivables amounting to $161,300. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. What effect will the entry to recognize the uncollectible accounts expense for Year 2 have on the elements of...
sel, Inc. reported net sales revenue of $600,000 in 2018 and $500,000 in 2019. The company’s...
sel, Inc. reported net sales revenue of $600,000 in 2018 and $500,000 in 2019. The company’s ending net receivables were $120,000 during 2017 and $130,000 during 2018. At December 31, 2019, the company had Accounts Receivable of $148,000 and an unadjusted debit balance in its Allowance for Doubtful Accounts account of $1,000. The company reported Bad Debt Expense of $6,000 during 2019. Required: Determine the net receivables at December 31, 2019. Calculate the receivables turnover ratio for 2018 and 2019....
The following information is available for Quality Book Sales’ sales on account and accounts receivable: Accounts...
The following information is available for Quality Book Sales’ sales on account and accounts receivable: Accounts receivable balance, January 1, Year 2 $ 79,800 Allowance for doubtful accounts, January 1, Year 2 4,970 Sales on account, Year 2 563,000 Collection on accounts receivable, Year 2 569,000 After several collection attempts, Quality Book Sales wrote off $3,000 of accounts that could not be collected. Quality Book Sales estimates that 4 percent of the ending accounts receivable balance will be uncollectible. Required...
Problem 3: The following account balances come from the records of Stone Company:                             &nbs
Problem 3: The following account balances come from the records of Stone Company:                                                                                         Beginning Balance                           Ending Balance                 Accounts Receivable                                                       $4,000                                                   $4,500                 Allowance for Doubtful Accounts $150                                                       $250 During the accounting period, Stone recorded $21,000 of service revenue on account. The company also wrote off a $180 account receivable. Required: Answer the following questions. Determine the amount of cash collected from receivables. Determine the amount of bad debt expense recognized during the period.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT