Question
At December 31, 2021, Ivanhoe Industries reports the following selected accounts from the unadjusted trial balance for its first year of operations: Account Debit Credit
At December 31, 2021, Ivanhoe Industries reports the following selected accounts from the unadjusted trial balance for its first year of operations:
Account | Debit | Credit | ||
---|---|---|---|---|
Accounts receivable | $728,000 | |||
Accounts payable | $364,000 | |||
Cash | 41,600 | |||
Cost of goods sold | 1,820,000 | |||
Interest receivable | 1,175 | |||
Interest revenue | 2,350 | |||
Merchandise inventory | 338,000 | |||
Notes receivable, due April 10, 2022 | 46,800 | |||
Prepaid insurance | 8,320 | |||
Refund liability | 65,000 | |||
Short-term investments | 52,000 | |||
Sales | 4,290,000 | |||
Sales returns and allowances | 104,000 | |||
Unearned revenue | 26,000 |
- Your Answer
- Correct Answer (Used)
Prepare the journal entry to record the bad debt expense on December 31, 2021, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Dec. 31 | enter an account title to record estimate of uncollectible accounts on December 31 | enter a debit amount | enter a credit amount |
enter an account title to record estimate of uncollectible accounts on December 31 | enter a debit amount | enter a credit amount | |
(To record estimate of uncollectible accounts.) |
- Your Answer
- Correct Answer (Used)
Prepare the current assets section of the balance sheet for Ivanhoe Industries on December 31, 2021. (List Current Assets in order of liquidity. Enter account name only and do not provide descriptive information.)
IVANHOE INDUSTRIES Balance Sheet (Partial) choose the accounting period December 31, 2021For the Month Ended December 31, 2021For the Year Ended December 31, 2021 | |||||
---|---|---|---|---|---|
Assets | |||||
select an opening section name Current LiabilitiesTotal Long-Term LiabilitiesTotal Current LiabilitiesTotal Intangible AssetsLong-Term InvestmentsStockholders' EquityTotal AssetsCurrent AssetsTotal Liabilities and Stockholders' EquityTotal Property, Plant and EquipmentTotal Current AssetsTotal Long-Term InvestmentsTotal LiabilitiesTotal Stockholders' EquityProperty, Plant and EquipmentIntangible AssetsLong-Term Liabilities | |||||
enter a balance sheet item | $enter a dollar amount | ||||
enter a balance sheet item | enter a dollar amount | ||||
enter a balance sheet item | $enter a dollar amount | ||||
select between addition and deduction AddLess: enter a balance sheet item | enter a dollar amount | enter a subtotal of the two previous amounts | |||
enter a balance sheet item | enter a dollar amount | ||||
enter a balance sheet item | enter a dollar amount | ||||
enter a balance sheet item | enter a dollar amount | ||||
enter a balance sheet item | enter a dollar amount | ||||
select a closing section name Intangible AssetsLong-Term InvestmentsCurrent LiabilitiesLong-Term LiabilitiesTotal Liabilities and Stockholders' EquityTotal Current LiabilitiesTotal Stockholders' EquityTotal Long-Term InvestmentsTotal Long-Term LiabilitiesTotal Intangible AssetsCurrent AssetsTotal Current AssetsStockholders' EquityProperty, Plant and EquipmentTotal Property, Plant and EquipmentTotal AssetsTotal Liabilities | $enter a total amount for this section |
- Your Answer
- Correct Answer (Used)
Calculate the receivables turnover and collection period. (Remember that this is the end of the first year of business.) (Round answers to 1 decimal place, e.g. 52.7. Use 365 days for calculation.)
Receivables turnover | enter Receivables turnover in times rounded to 1 decimal place | times | |
Average collection period | enter Average collection period in days rounded to 1 decimal place | days |
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