Accounting Principles Third Canadian Edition Chapter 8 Answers.Microsoft

16, 455 Allowance for Doubtful Accounts [$22, 155 - $5, 700]................................... 26, 000 Accounts Receivable............................. 16, 455. 31 Accounts Receivable—DNR Co.... Notes Receivable—DNR Co...... Interest Receivable [$4, 800 x 6. Accounting principles third canadian edition chapter 8 answers to worksheet. PROBLEM 8-8A (Continued) (a) (Continued) Nov. 22 There would probably be no entry made on November 22. Before Write-Off $471, 000. CONTINUING COOKIE CHRONICLE (a).

Accounting Principles Third Canadian Edition Chapter 8 Answers Pdf

To improve this process I would recommend using a separate credit department to evaluate the credit worthiness of all potential credit customers. Q8-5 Q8-7 Q8-8 Q8-9 Q8-12 Q8-13. Overall, Western Roofing's liquidity has improved over the three year period. Under the percentage of receivables approach, the balance in the allowance for doubtful accounts is derived either (a) by applying a percentage estimate of bad debts to total receivables or (b) from an analysis of individual customer accounts. Cash is needed to pay for the inventory the company has purchased and to cover other operating expenses such as sales commissions. The company would evaluate the information available on Young Company and may decide to write-off the note and not accrue the interest. Interest revenue is included in Other Revenue on the income statement. Suncor's accounts receivable turnover and average collection period are much better than the industry average of 7. Allowance for Doubtful Accounts............. Accounting principles third canadian edition chapter 8 answers quizlet. 17, 800 Accounts Receivable............................. (d) Accounts Receivable................................. Allowance for Doubtful Accounts......... 6, 300. Given in text Inventory turnover. This manual is furnished under licence and may be used only in accordance with the terms of such licence. SOLUTIONS TO EXERCISES EXERCISE 8-1 Apr. Download Chapter 8 solution... However, the increase in receivables may be due to slower collections rather than improved sales.

Accounting Principles Third Canadian Edition Chapter 8 Answers.Microsoft

One should not prepare financial statements with the objective of achieving or sustaining a predetermined growth rate. CONTINUING COOKIE CHRONICLE (Continued) (a) (Continued) 3. A company, such as Canadian Pacific, may chose to securitize its receivables to accelerate cash receipts from their receivables. The data contained in these files are protected by copyright.

Accounting Principles Third Canadian Edition Chapter 8 Answers.Com

18, 000 11, 500 Dr. 3, 500 8, 000 Dr. 24, 375 16, 375. Recommended textbook solutions. BLOOM'S TAXONOMY TABLE Correlation Chart between Bloom's Taxonomy, Study Objectives and End-ofChapter Material Study Objective. Matching principle directs accountants to gather expenses related to the revenue recorded. Under the percentage of receivables approach the allowance is estimated and the entry is for the amount estimated adjusted for the existing balance in the allowance account. 3, 200, 000 50, 000 3, 000, 000 90, 000 18, 000 18, 000. Allowance for Doubtful Accounts. 1 Notes Receivable–Jones................... 10, 500 Accounts Receivable—Jones....... June 30 Interest Receivable............................. Interest Revenue [$10, 500 x 5% x 4/12]..................... July 1. If Imagine Co. used 3% of accounts receivable rather than aging the accounts, the adjustment would be $21, 550 [($385, 000 x 3%) + $10, 000]. Accounting principles third canadian edition chapter 8 answers pdf. The two main Canadian GAAPs that played vital roles in the balance sheet perspective were the cost principle and the principle of conservatism. A company may prefer a note receivable because it gives a stronger legal claim to assets and normally includes interest.

Accounting Principles Third Canadian Edition Chapter 8 Answers Quizlet

Show balance sheet presentation. By regularly selling its accounts receivable, Suncor is able to more quickly convert receivables into cash. This will provide more accurate information about the customer in case the customer wants to receive credit again in the future. 1, 609, 710 1, 614, 160 4, 450 1, 609, 710 785, 240 824, 470 69, 580 754, 890 12, 070 766, 960. 6 days, an increase of three days. Given that the dollar amount of the allowance has not changed it would represent a higher portion of gross accounts receivable in 2003 than in 2005. Accounts and notes receivable are sometimes called trade receivables because they result from sales transactions and occur in the normal course of business operations.

Accounting Principles Third Canadian Edition Chapter 8 Answers To Worksheet

ASSIGNMENT CHARACTERISTICS TABLE Problem Number 1A. 30 Note Receivable—Lesperance...... Accounts Receivable.................. 1, 050 566 566. 20, 000 ($24, 000 - $4, 000). Calculate bad debt amounts and answer questions. Comprehension Q8-3 Q8-4. The advantage of using an aging schedule to estimate uncollectible accounts is the amount calculated is much more sensitive to the amount of time the receivable has been outstanding. 25% x 4/12 = $6, 000 x 5% x 1/12 = $10, 200 x 6% x 0/12 = Total. Bad Debts Expense (f) 25, 150 Allowance for Doubtful Accounts....... Accounts Receivable (b)................. 21, 550. 31 Accounts Receivable—DRX..... Notes Receivable—DRX....... Interest Receivable [$6, 000 x 5% x 1/12].............. Interest Revenue [$6, 000 x 5% x 1/12].............. 6, 050. 2007 Accounts Receivable............................................. $260, 000 Less: Allowance for Doubtful Accounts................ 22, 155 Net Realizable Value............................................... $237, 845 2008 Accounts Receivable............................................. $275, 000 Less: Allowance for Doubtful Accounts................ 43, 020 Net Realizable Value............................................... $231, 980.

Unauthorized copying, distribution, or transmission of this page is strictly prohibited. June 12 Accounts Receivable–Worthy........... Allowance for Doubtful Accounts. EXERCISE 8-7 (Continued) Dec. 31 Interest Receivable............................. Interest Revenue*.......................... *Calculation of interest revenue: Morgan: $24, 000 x 8% x 2/12 Wright: $4, 500 x 6% x 1/12 Barnes: $8, 000 x 7% x 0. Record accounts receivable and bad debts transactions; discuss statement presentation. This is evidenced by the decrease in the average collection period from 36. 76 2005: $1, 149 ÷ $1, 958 = 0. Accounts receivable. While it is in their best interest to stimulate sales, this may deter them from performing adequate credit checks.

Date July 1 1 31 31. Broadening Your Perspective.

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