Question

Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial...

Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial statements contain the following information ($ in millions):

2017 2016
Balance sheets:
Accounts receivable, net $ 4,172 $ 3,736
Income statements:
Sales revenue $ 35,745 $ 33,771


A note disclosed that the allowance for uncollectible accounts had a balance of $28 million and $52 million at the end of 2017 and 2016, respectively. Bad debt expense for 2017 was $49 million. Assume that all sales are made on a credit basis.

Required:
1. What is the amount of gross (total) accounts receivable due from customers at the end of 2017 and 2016?
2. What is the amount of bad debt write-offs during 2017?
3. Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during 2017.
4. Analyze changes in net accounts receivable to calculate the amount of cash received from customers during 2017.
  

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.

2017 2016
Accounts receivable, net 4172 3736
Add: Allowance for uncollectible accounts 28 52
Accounts receivable (Gross) 4200 3788

2.

Beginning Allowance for uncollectible acccount 52
Add: bad debt expense for 2017 49
Less: Ending Allowance for uncollectible acccount -28
bad debts written off during 2017 73

3.

Accounts Receivavle (Gross)
Beg. Bal. 3736
Sales 35745 73 Write offs
35236 Collection
End. Bal. 4172

4.

Beginning (net) Accounts receivable 3736
Sales 35745
Collection -35236
write off -73
Ending (net) Accounts receivable 4172
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
Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial...
Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial statements contain the following information ($ in millions): 2017 2016 Balance sheets: Accounts receivable, net $ 3,897 $ 3,461 Income statements: Sales revenue $ 34,970 $ 32,996 A note disclosed that the allowance for uncollectible accounts had a balance of $23 million and $47 million at the end of 2017 and 2016, respectively. Bad debt expense for 2017 was $44 million. Assume that all...
Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2015 financial...
Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2015 financial statements contain the following information (in millions): 2015 2014 Balance sheets: Accounts receivable, net $ 3,358 $ 3,434 Income statements: Sales revenue $ 30,601 $ 27,799 A note disclosed that the allowance for uncollectible accounts had a balance of $78 million and $78 million at the end of 2015 and 2014, respectively. Bad debt expense for 2015 was $20 million. Assume that all sales...
General Mills reported the following information in its 2015 financial statements ($ in millions): 2015 2014...
General Mills reported the following information in its 2015 financial statements ($ in millions): 2015 2014 Balance Sheets: Accounts receivable, net $ 1,386.7 $ 1,483.6 2015 Income statement: Sales revenue $ 17,630.3 A note disclosed that the allowance for uncollectible accounts had a balance of $25.3 million and $21.0 million at the end of 2015 and 2014, respectively. Bad debt expense for 2015 was $19.8 million. Required: Determine the amount of cash collected from customers during 2015. (All sales are...
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning...
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $370,000; allowance for uncollectible accounts at the beginning of the year, $26,000 (credit balance); credit sales during the year, $1,300,000; accounts receivable written off during the year, $17,000; cash collections from customers, $1,200,000. Assuming the company estimates that future bad debts will equal 9% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year. 2. Calculate...
Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for...
Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 2% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. At the end of 2017, accounts receivable were $602,000 and the allowance account had...
Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for...
Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 2% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. At the end of 2020, accounts receivable were $614,000 and the allowance account had...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $360,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,250,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,150,000. Assuming the company estimates bad debts at an amount equal to 3% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $450,000; allowance for uncollectible accounts at the beginning of the year, $34,000 (credit balance); credit sales during the year, $1,700,000; accounts receivable written off during the year, $25,000; cash collections from customers, $1,850,000. Assuming the company estimates bad debts at an amount equal to 3% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in...
Problem 7-5 (Algo) Receivables; bad debts and returns; Gemstone Products [LO7-4, 7-5] Gemstone Products located in...
Problem 7-5 (Algo) Receivables; bad debts and returns; Gemstone Products [LO7-4, 7-5] Gemstone Products located in New York City, is one of the world's largest producers of beauty and related products. The company's consolidated balance sheets for the 2016 and 2015 fiscal years included the following ($ in thousands): 2016 2015 Current assets: Receivables, less allowances of $132,185 in 2016 and $87,785 in 2015 $ 460,300 $ 440,700 A disclosure note accompanying the financial statements reported the following ($ in...
Required financial statements (for questions 1 and 2): Verizon Communications (FYE: December 31, 2017) 1.       The...
Required financial statements (for questions 1 and 2): Verizon Communications (FYE: December 31, 2017) 1.       The allowance for doubtful account balance made up what percentage of Verizon’s accounts receivable (gross) on the December 31,         2017 balance sheet? The estimated percentage (in 1 above) increased to 5%:              a)      What would be the new allowance for doubtful accounts and accounts receivable (net of allowance) on the December 31, 2017 balance sheet? b)      What impact would the change in percentage have on bad...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT