Exam 6: The Current Asset Classification, Cash, and Accounts Receivable

The following information is provided for Atlanta, Inc.. Balance Sheet 2017 2016 Cash and cash equivalents \ 89,000 \ 106,000 Accounts Receivables, less allowance for doubtful accounts of \ 4,600(2017) and \ 2,000(2016) 198,000 154,000 How much is the balance in the Accounts Receivable account at December 31, 2017?

Use the information that follows from the financial statements of Pines Company at December 31, 2017, to answer questions 16 through 20 that follow. Accounts payable \ 2,000 Accounts receivable 3,000 Capital stock 8,000 Cash 5,000 Inventory 19,000 Land 24,000 Notes payable (short-term) 5,000 Cost of goods sold 12,000 Retained earnings 21,000 Sales revenue 20,000 -Calculate total current assets for Pines Company at December 31, 2017.

Sanchez Inc. sells to customers only on credit. For the year ended December 31, 2017, the following information is provided: Sales revenue \8 50,000 Accounts receivable, 1/01/17 230,000 Allowance for doubtful accounts, 12 / 31 / 17 (before adjustment for bad debts) 600 Collections during 2017 470,000 Accounts written off as uncollectible during 2017 13,000 Sales returns 7,000 If Sanchez estimates bad debts at 5% of net credit sales, how much is bad debt expense?

The procedures designed to ensure that the cash account on the balance sheet reflects the actual amount of cash in the company's possession are referred to as

A company's allowance for doubtful accounts is $4,000 and $3,000 on 1/1/18 and 1/1/17, respectively. During 2017, bad debt expense was estimated to be 6% of net credit sales of $100,000. During 2017, the amount of accounts written off as uncollectible amounts to

Why is too much cash undesirable?

The journal entry to record the recovery of a previously written-off $2,000 account receivable (for customer Leno Company) under the allowance method would include: