We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Text & Cases Problem Essay

Custom Student Mr. Teacher ENG 1001-04 27 May 2018

Text & Cases Problem

16 to 30
150,000.00
0.94
9,000.00

31 to 45
75,000.00
0.80
15,000.00

46 to 60
45,000.00
0.65
15,750.00

61 to 75
15,000.00
0.50
7,500.00

Over 75
15,000.00


15,000.00
Total

51,750.00
15,000.00

a. Appropriate balance for AFDA is $ 51,750.00
(equals to Allowance Amount in the Aging Schedule)

b. Presentation of Accounts Receivable in Balance Sheet:
Accounts Receivable
735,000.00
Less: Allowance for Doubtful Accounts
51,750.00
Net, Accounts Receivable
683,250.00

c. Dollar Effect of Bad Debt Expense:
AFDA, Beginning Balance
37,500.00
AFDA, Write-Off
(15,000.00)
AFDA, Movement
29,250.00
AFDA, Ending Balance
51,750.00

Dollar Effect of Bad Debt Expense is $ 29.250.00
(equals to movement amount of AFDA)

Case 5-1: Question 1

Stern Corporation

General Journal

(in USD)
Date
Account
Dr.
Cr.
2010

Dec
31
Accounts Receivable
9,965,575.00

Sales

9,965,575.00

31
Cash
9,685,420.00

Accounts Receivable

9,685,420.00

31
Allowance for Doubtful Accounts
26,854.00

Accounts Receivable

26,854.00

31
Accounts Receivable
4,594.00

Allowance for Doubtful Accounts

4,594.00

31
Cash
2,108.00

Accounts Receivable

2,108.00

31
Cash
1,566.00

Accounts Receivable

1,566.00

31
Bad Debt Expense
29,886.00

Allowance for Doubtful Accounts

29,886.00

Case 5-1: Question 2

(in USD)
Account
Beginning Balance, 2010
Movement, 2010
Ending Balance, 2010
Cash
671,344.00
9,689,094.00
10,360,438.00
Accounts Receivable
988,257.00
254,221.00
1,242,478.00
Allowance for Doubtful Accounts
29,648.00
7,626.00
37,274.00

Sales

9,965,575.00
9,965,575.00
Bad Debt Expenses

29,886.00
29,886.00

a. Accounts Receivable balance as of Dec 31, 2010 is $ 1,242,478.00 b. Allowance for Doubtful Accounts balance as of Dec 31, 2010 is $ 37,274.00

Case 5-1: Question 3

1
Current Ratio

Current Asset
=
13,574,107.00
=
9.4915

Current Liabilities

1,430,132.00

Current Asset:

Cash

10,360,438.00

Accounts Receivable

1,242,478.00

Allowance for Doubtful Accounts

(37,274.00)

U.S Treasury Securities

274,060.00

Inventories

1,734,405.00

Total Current Asset

13,574,107.00

2
Acid Test Ratio

Current Monetary Asset
=
11,839,702.00
=
8.2787

Current Liabilities

1,430,132.00

Current Monetary Asset:

Cash

10,360,438.00

Accounts Receivable

1,242,478.00

Allowance for Doubtful Accounts

(37,274.00)

U.S Treasury Securities

274,060.00

Total Current Monetary Asset

11,839,702.00

3
Days Receivable

Accounts Receivable
=
1,242,478.00
=
45.5071
Days

Sales / 365

27,302.95

Free Text & Cases Problem Essay Sample

A

  • Subject:

  • University/College: University of California

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 27 May 2018

  • Words:

  • Pages:

Let us write you a custom essay sample on Text & Cases Problem

for only $16.38 $13.9/page

By clicking "Order now", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.

your testimonials

Our customer support team is available Monday-Friday 9am-5pm EST. If you contact us after hours, we'll get back to you in 24 hours or less.

By clicking "Send Message", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
No results found for “ image
Try Our service