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    Practice 5

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    Practice 5

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    11 views3 pages

    Practice 5

    Uploaded by

    yes yesno

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Advances to trade suppliers 40,000

    Trade discounts (10,000)

    Stock subscription receivable 200,000

    How much is the amount of nontrade receivables?

    a. 200,000 b. 230,000 c. 240,000 d. 340,000

    33. All ofCleeneth’s sales are on a credit basis. The following information is available for

    2010:

    Allowance for doubtful accounts, 1/1/2010 18,000

    Sales 950,000

    Sales returns 80,000

    Accounts written off as uncollectible, 11/30/2010 20,000

    Cleeneth provides for doubtful accounts expense at the rate of 3% of net sales. At December

    31, 2010, the allowance for doubtful accounts balance should be 24,100

    The following data are available on Dec. 31, 2010 for OKS Lang Company:
    Credit sales 6,500,000 Accounts receivable 1,640,000

    Allow. For bad debts –beg. 88,000 Accounts written off 92,000

    Recovery of accounts previously written of 16,000

    Compute for the following:

    34. Bad debts expense assuming the estimate is based on accounts receivable at 9%.

    135,600

    35. Bad debts expense based on aging, 60% of the total A/R is 96% collectible while the

    remaining 40% is 80% collectible 158,560

    36. Allow. For bad debts – end assuming 3.5% of credit sales are doubtful of collection.

    239,500

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