exercises_on_AR-Cash_MS

exercises_on_AR-Cash_MS - Exercises on Cash, A/R and M/S 1)...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercises on Cash, A/R and M/S 1) CASH BASIS VS. ACCRUAL BASIS Using the following information selected from ending and beginning bal- ance sheets of ZOLDEN Company and the additional cash flow informa- tion given below, compute the following: a. Net Sales for the year 2004 b. Net Purchases for the year 2004 c. Cost of Goods Sold for the year 2004 d. Gross Profit for the year 2004 e. Insurance Expense for the year 2004 Balance sheet items: Items 31.12.2003 31.12.2004 Accounts Receivables 4.500 7.900 Inventory 2.800 1.500 Prepaid Insurance 210 125 Accounts Payables 600 3.700 Cash Flow Information: - Collection from the customers 24.100 - Insurance policy purchases 1.780 - Proceedings to the suppliers 12.400 ANSWER: a) 27.500 b) 15.500 c) 16.800 d) 10.700 e) 1.865 This is a copyrighted material and it cannot be used without the written permission of its author © Dr. Kerem Sar ı o ğ lu (2004) 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2) DOUBTFUL (UNCOLLECTIBLE) ACCOUNTS At DEZDA Co. , the balances for Accounts Receivable and Allowance for Uncollectible Accounts as of 01.01.2004 could be seen on T accounts as shown below: ACCOUNTS RECEIVABLE ALLOWA NCE FOR UNCOL- LECTIBLE ACCOUNTS 179.800 780 During 2004 credit sales were $1.790.000 and collections on account were $1.350.000. In addition $1.000 accounts receivable were written off. Using T-accounts, determine the year-end balances of Accounts Receiv- able and Allowance for Uncollectible Accounts. For the each of the as- sumptions made below, make the year-end adjusting entry to record the uncollectible accounts expense, and show the year-end balance sheet presentation of Accounts Receivable and Allowance for Uncollectible Ac-
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

exercises_on_AR-Cash_MS - Exercises on Cash, A/R and M/S 1)...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online