2020 2021. Income Statement Sales (net) $4,221,500 $4,875,400 Cost of Goods Sold 1,927,800 2,159,600 Bad Debts Expense 13,600 20,500 Balance Sheet Accounts Receivable 362,400 321,800 Allowance for Doubtful Accounts 21,100 18,200 Advances From Customers 40,200 35.900 1. What entries does a company normally make to record sales on account? 2. Explain what the account called "Sales (net)" means? 3. What entries does a company normally make when they 2. receive cash for products which will be delivered at a later date and b. when they deliver the products at a later date 4. Provide three reasons why Accounts Receivable might be credited (reduced) during the year? 5. What journal entry does a company normally make when a customer returns a product after paying for it 6. You offered your customers an incentive to pay their accounts more quickly by reducing the amount to be paid by 2% if the customer pays within 10 days. What entry would you make when a customer pays off their account on the 8th day atter you sold the product on account Accounts Receivable 362,400 321,800 Allowance for Doubtful Accounts 21,100 18,200 Advances From Customers 40,200 35,900 1. What entries does a company normally make to record sales on account? 2. Explain what the account called "Sales (net)" means? 3. What entries does a company normally make when they 1. receive cash for products which will be delivered at a later date and b. when they deliver the products at a later date 4. Provide three reasons why Accounts Receivable might be credited (reduced) during the year? 5. What journal entry does a company normally make when a customer returns a product after paying for it? 6. You offered your customers an incentive to pay their accounts more quickly by reducing the amount to be paid by 2% if the customer pays within 10 days. What en you make when a customer pays off their account on the 8th day after you sold the product on account? 7. Based upon the amounts and accounts at the top of the page, can you explain why Allowance for Doubtful Accounts changed from $21,100 in 2020 to $18,200 in 20 Please show and label your work. 8. What was your company's average collection period (Days in Receivables) for 20217 Picase show your calculations A. Explain why a retail company might have accounts receivable AND notes receivable on their bulance sheet. B. Your company has a $300,000, 5-year, 8% note receivable which requires annual payments of principal and interest on October 1 each year, 1. How much are the annual payments? Show your calculations 2. How much of the $300,000 should be considered a current asset on December 31 of this year? Show your calculations. 3. How much will this note impact Income Before Taxes NEXT year? Show your calculations. C. Your company has a current ratio of $420,000 / $200,000 = 2.10. Show how each of the following INDEPENDENT events would impact the current ratio. Ignore any tex 1. Collected $30,000 of accounts receivable The new current ratio would be $420.000 + or -S. $200,000+ or -5 2. Purchased $50,000 of merchandise on account The new current ratio would be 5420.000 + or - S. $200,000+ or - 5 -3 Estimated bad debts to be $18,000 for the year The new current ratio would be 5420.000 + or - 5. $200,000+ or 5 4. Sold $27,000 of merchandise for $60,000 account FAR C. Your company has a current ratio of $420,000 / $200,000 = 2.10. Show how each of the following INDEPENDENT impact and show your calculations. 1. Collected $30,000 of accounts receivable The new current ratio would be $420,000+ or - S. $200,000+ or - S 2. Purchased $50,000 of merchandise on account. The new current ratio would be $420,000+ or - S. $200,000+ or - $ 3. Estimated bad debts to be $18,000 for the year The new current ratio would be $420,000+ or - S. $200,000+ or - S 4. Sold $27,000 of merchandise for $60,000 on account The new current ratio would be $420,000+ or - S. S200,000+ or - $ Vlow Page