Business, 11.03.2022 02:20 jacky852

Bad debts analysis—Allowance account and financial statement effects The following is a portion of the current asset section of the balance sheets of HiROE Co., at December 31, 2011 and 2010:
December 31, 2011 December 31, 2010

Accounts receivable, less allowance for
uncollectible accounts of $54,000 and
$18,000, respectively 906,000 722,000
Required:
a. Describe how the allowance amount at December 31, 2011, was most likely determined.
b. If bad debts expense for 2011 totaled $48,000, what was the amount of accounts receivable written off during the year? (Hint: Use the T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.)
c. The December 31, 2011, Allowance account balance includes $21,000 for a past due account that is not likely to be collected. This account has not been written off. If it had been written off, what would have been the effect of the write-off on
1. Working capital at December 31, 2011?
2. Net income and ROI for the year ended December 31, 2011?
d. What do you suppose was the level of HiROE’s sales in 2011, compared to 2010? Explain your answer.
e. Calculate the ratio of the Allowance for Uncollectible Accounts balance to the Accounts Receivable balance at December 31, 2010, and 2011. What factors might have caused the change in this ratio?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 00:50

Consider each of the following cases: case accounting break-even unit price unit variable cost fixed costs depreciation 1 127,400 $ 38 $ 25 $ 711,000 ? 2 124,000 ? 41 2,500,000 $ 900,000 3 5,753 117 ? 171,000 100,000 required: (a) find the depreciation for case 1. (do not round your intermediate calculations.) (b) find the unit price for case 2. (do not round your intermediate calculations.) (c) find the unit variable cost for case 3. (do not round your intermediate calculations.)

Answers: 2

Answer

Business, 22.06.2019 07:30

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.

Answers: 2

Answer

Business, 22.06.2019 12:30

In the 1970s, kmart used blue light specials to encourage customers to flock to a particular department having a temporary sale. a spinning blue light activated for approximately 30 seconds, and then an in-store announcement informed shoppers of the special savings in the specific department. over time, loyal kmart shoppers learned to flock to the department with the spinning blue light before any announcement of special savings occurred. if kmart was employing classical conditioning techniques, what role did the spinning blue light play?

Answers: 3

Answer

Business, 22.06.2019 17:30

After the embarrassing sign incident at the restaurant you own, you decide to offer employees a six-week fundamental writing skills workshop. a local business communication instructor, who has experience teaching writing skills at treleaven community college, will facilitate the sessions. to encourage employees to attend these optional sessions, write an email that explains why you’re offering the workshop and why employees should participate.

Answers: 2

Answer

You know the right answer?

Bad debts analysis—Allowance account and financial statement effects The following is a portion of...

Questions