MMM Inc. has the following account balances at Dec. 31, 2020: Accounts Payable: $700,000 Cash: $1,450,000 Inventory: $1,850,000 Accounts Receivable (net): $750,000 Net Credit Sales: $25,750,000 PP&E (net): S8, 460,000 Bonds Payable due 6/30/22: $5,000,000 Cost of Goods Sold: $13,150,000 Short Term Investments: $150,000 Wages Payable: $425,000 Income Taxes Payable: $100,000 Note Payable due 6/30/21: $2,000,000 Bad Debt Expense: $125,000 Common Stock: $50,000 MMM Inc.'s Current Ratio is?

MMM Inc. has the following account balances at Dec. 31, 2020: Accounts Payable: $700,000 Cash: $1,450,000 Inventory: $1,850,000 Accounts Receivable (net): $750,000 Net Credit Sales: $25,750,000 PP&E (net): S8, 460,000 Bonds Payable due 6/30/22: $5,000,000 Cost of Goods Sold: $13,150,000 Short Term Investments: $150,000 Wages Payable: $425,000 Income Taxes Payable: $100,000 Note Payable due 6/30/21: $2,000,000 Bad Debt Expense: $125,000 Common Stock: $50,000 MMM Inc.'s Current Ratio is?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 7RE: McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made...

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Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
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The following information was taken from the accounts receivable records of Pina Colada Corporation as at December 31, 2020: OutstandingBalance Percentage Estimatedto be Uncollectible 0 – 30 days outstanding $154,000 0.5% 31 – 60 days outstanding 63,200 2.5% 61 – 90 days outstanding 39,100 4.0% 91 – 120 days outstanding 21,600 6.5% Over 120 days outstanding 5,300 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,170 prior to the adjustment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $3,990 prior to…
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