Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download

Question:

Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com.

Required:

1. Determine the amounts in the accounting equation for the year ending December 31, 2016, for each company. Does the accounting equation balance?

2. Set up a T-account for Under Armour's and Columbia's accounts receivable account and include the beginning and ending balances. Complete the T-account to reflect the sales and cash collections for the year for each company. Assume all sales are on account.

3. Prepare the journal entry to record the following two events for Under Armour and Columbia.

For simplicity, assume the event was recorded in a single journal entry.

a. What journal entry is necessary to record net sales for the year ending December 31, 2016? Assume that all sales were made on account.

b. What journal entry is necessary to record cash collections from customers during the ayear ending December 31, 2016?

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...