Clara Dover, the owner of Dover Plumbing Sales and Service, showed the following adjusted account balances for

Question:

Clara Dover, the owner of Dover Plumbing Sales and Service, showed the following adjusted account balances for the year ended March 31, 2020 (listed alphabetically):
Account ..............................................................................Account Balance*
Accounts payable............................................................... $ 6,900
Accounts receivable .......................................................... 28,000
Accumulated depreciation, tools .................................... 11,000
Accumulated depreciation, truck .................................... 14,000
Allowance for doubtful accounts .................................... 1,800
Bad debt expense ............................................................. 5,600
Cash .................................................................................... 16,000
Cash over/short expense ................................................. 20**
Clara Dover, capital ........................................................... 248,770
Clara Dover, withdrawals ................................................. 72,000
Cost of goods sold ............................................................ 103,000
Depreciation expense, tools ............................................ 2,000
Depreciation expense, truck ............................................ 5,000
Insurance expense ............................................................ 7,100
Interest expense ................................................................ 250
Merchandise inventory ..................................................... 9,000
Notes payable, due August 31, 2023 ............................... 17,000
Notes payable, due February 1, 2021 .............................. 6,000
Notes receivable, due December 1, 2022........................ 14,000
Petty cash ............................................................................ 400
Plumbing revenue .............................................................. 121,000
Prepaid insurance .............................................................. 3,800
Prepaid rent ........................................................................ 6,500
Rent expense ...................................................................... 23,000
Salaries expense ................................................................ 118,000
Salaries payable ................................................................. 3,200
Sales .................................................................................... 124,000
Tools .................................................................................... 82,000
Truck .................................................................................... 67,000
Unearned plumbing revenue ........................................... 9,000
*Assume all account balances are normal unless otherwise stated.
**Debit balance.


Required

Prepare a classified balance sheet based on the information provided.

Analysis Component: Dover Plumbing had total Plumbing revenue for the year ended March 31, 2019, of $86,000 and net accounts receivable at March 31, 2019, of $21,200. Calculate and compare days’ sales uncollected for March 31, 2019, and March 31, 2020. Round calculations to two decimal places.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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