1. Val's Vases purchased $91,000 of inventory on account Balance Sheet Income Statement Stmt, of Cash Flows Assets Liab. + Stockholders' Equity Allowance for Doubtful Accounts Inventory $91,000 Common Acct. + Reselv, Cash Acct. Pay $91,000 Retained Earnings Net Income 4 Stock Revenue Expenses Cash Flow 2. Val's Vases paid the supplier for inventory purchased on account in transaction 1 Balance Sheet Income Statement Stmt, of Cash Flows Assets Uah Stockholders' Equity Allowance for Doubtful Accounts inventory Acct. Receiv Common Stock Net Income Retained Earnings el Acct. Pay (91,000) Revenue Cash (91,000) Expenses Cash Flow (91.000) 3. Val's Vases sold inventory to customers on account totaling $78,000 during 2021. The inventory cost Val's Vases $47,000. Balance Sheet Income Statement Stmt. of Cash Flows Assets Viab. + Stockholders' Equity Allowance for Doubtful Acct. Accounts Inventory Pay. Cash Common + Stock Acct. Receiv. $78,00 0 Retained + Earnings Net Income Revenue Expenses Cash Flow $78,000 $78,000 (47,000) $78,000 (47,000) (47,000) $47,000 4. During 2021, Val's Vases collected $65,900 from customers who previously charged on account. Balance Sheet Income Statement Stmt. of Cash Flows Assets Liab: + Stockholders' Equity Allowance for Doubtful Accounts inventory Common Stock Acct. Pay. Retained Earnings Net Income Revenue Expenses Acct. + Beseiy ($65,900 Cash Flow Cash $65,90 0 $65,900 DA 5. Val's Vases made cash sales to customers totaling $39,000 during 2021. The inventory sold cost Val's Vases 23,000. Balance Sheet Income Statement Stmt. of Cash Flows Assets Lab + Stockholders' Equity Acct. + Receive Allowance for Doubtful Accounts Inventory Acct. Pay. Common Stock Retained + Earnings Net Income + Revenue Expenses Cash Flow Cash $39,00 0 $39,000 $39,000 (23,000) $39,000 (23,000) (23,000) 23,000 Using the transactions recorded above, answer the following questions for Val's Vases. 1. How much do customers owe to Val's Vases on December 31, 2021? In other words, what is the balance of accounts receivable on December 31, 2021? Customers still owe a total of $12,100 2. On December 31, 2021 Val's Vases estimates that $900 of its accounts receivable balance will be uncollectible. How will Val's Vases income statement and balance sheet be affected when they record this year-end estimate? 3. Calculate net accounts receivable on December 31, 2021 4. On January 2, 2022 Val's Vases is notified that customer Bobby Green filed for bankruptcy. Bobby owes Val's Vases $620. How will Val's Vases' income statement and balance sheet be affected when they record this write-off? 5. Assuming no other changes to accounts receivable since December 31, 2021, calculate net accounts receivable after the write-off on January 2, 2022
