Below is the balance sheet for Paxlater for 2014. The questions relate to a Balance Sheet for Cinch Inc. Dec 31, 2019 Assets 50,000 Cash Accounts Receivable, less allowance for doubtful accounts of $2,000 Inventories Property, plant and equipment 58,000 90,000 200,000 Liabilities Accounts payable Long Term Debr 20.000 100,000 Shareholders Equity Common Stock Capital Stock Retained Earnings 3.000 57.000 218,000 Paxlater sold $900,000 of appliances during 2020. 90% of Cinch's sales w sales. During 2006, $1.600 of uncollectible accounts were written off. Here is at 2020 for gross accounts receivable for the firm. Gross accounts receivable initial 60,000 sales 900,000 890,000 1.600 payments received write offs of specific accounts receiva final 68,400 The gross accounts receivable t-account can also be written using credit sal sales and payments of accounts receivable. B2% ) BARC Thu 1-2 [Compatibility Mode] A 2+ 1 AaBCDE AaBbCcDc AaBbCcDdE AaBb Cede AaBb CcDdEe Emphasis Heading 1 Gross accounts receivable initial credit sales 60,000 810,000 800,000 1,600 payments received write offs of specific accounts receivable final 68,400 Recall that specific write offs reduce gross accounts receivable but do not alter net accounts receivable) as can be seen in their journal entry 1,600 Allowance for doubtful accounts Accounts receivable Write offs of specific accounts receivable Even if you do not fully understand this explanation of how the gross accounts receivable of $68,400 at the end of 2020 was calculated you should use that figure in the calculations below. The proportion of credit sales which typically default is 0.25% If the firm uses the aging approach, it will use the following information. It has 550,000 of accounts receivable that are current and typically creditors default on 0.5% of those accounts receivable. 58,000 of the accounts receivable are 1-30 days late and creditors typically default on 3% of those receivables. The remaining 510,400 of accounts receivable are 31 or more days late and default rates are typically 15% on those accounts receivable. Show the t-accounts for allowance for doubtful accounts for Paylater using the percentage of credit sale and the aging methods. Which method has highest expenses and lower carnings? Also present the balance sheet entry for accounts receivable at the end of 2020 Remember that in the percentage of credit sales method you first calculate the bad debt expense and then calculate the end of the year level of the allowance for doubtful accounts. For the percentage of receivables and aging methods. you first calculate the end of year allowance and then the bad debt expense. Gross accounts receivable initial 60,000 810,000 crcdit sales 800,000 1,600 payments received write offs of specific accounts receivable final 68,400 Recall that specific write offs reduce gross accounts receivable (but do not alter net accounts receivable) as can be seen in their journal entry 1,600 Allowance for doubtful accounts Accounts receivable 1,600 Write offs of specific accounts receivable Even if you do not fully understand this explanation of how the gross accounts receivable of $68,400 at the end of 2020 was calculated you should use that figure in the calculations below. The proportion of credit sales which typically default is 0.25%. If the firm uses the aging approach, it will use the following information. It has $50,000 of accounts receivable that are current and typically creditors default on 0.5% of those accounts receivable. $8,000 of the accounts receivable are 1-30 days late and creditors typically default on 3% of those receivables. The remaining $10.400 of accounts receivable are 31 or more days late and default rates are typically 15% on those accounts receivable. Show the t-accounts for allowance for doubtful accounts for PayLater using the percentage of credit sale and the aging methods. Which method has highest expenses and lower camnings? Also present the balance sheet entry for accounts receivable at the end of 2020. Remember that in the percentage of credit sales method you first calculate the bad debt expense and then calculate the end of the year level of the allowance for doubtful accounts. For the percentage of receivables and aging methods. you first calculate the end of year allowance and then the bad debt expense. Homework Flve Paxlater Inc. Paxlatex Inc. is an imaginary firm that sells appliances. Below is the balance sheet for Paxlater for 2019. The questions relate to 2020, Balance Sheet for Cinch Inc. Dec 31, 2019 Assets 50,000 Accounts Receivable, less allowance for doubtful accounts of $2,000 Inventories Property, plant and cquipment 58,000 90.000 200,000 Llabilities Accounts payable Long Term Debt 20,000 100,000 Shareholders Equity Common Stock Capital Stock Retained Earnings 57.000 218,000 PayLater sold 5900,000 of appliances during 2020. 90% of Cinch's sales were credit sales. During 2006, 51.600 of uncollectible accounts were written off. Here is a t-account for 2020 for gross accounts receivable for the firm. Gross accounts receivable initial 60.000 sales 900.000 890,000 1.600 payments received write alls of specific accounts receivable final 68,400 The gross accounts receivable t-account can also be written using credit sales in place of sales and payments of accounts receivable. Below is the balance sheet for Paxlater for 2014. The questions relate to a Balance Sheet for Cinch Inc. Dec 31, 2019 Assets 50,000 Cash Accounts Receivable, less allowance for doubtful accounts of $2,000 Inventories Property, plant and equipment 58,000 90,000 200,000 Liabilities Accounts payable Long Term Debr 20.000 100,000 Shareholders Equity Common Stock Capital Stock Retained Earnings 3.000 57.000 218,000 Paxlater sold $900,000 of appliances during 2020. 90% of Cinch's sales w sales. During 2006, $1.600 of uncollectible accounts were written off. Here is at 2020 for gross accounts receivable for the firm. Gross accounts receivable initial 60,000 sales 900,000 890,000 1.600 payments received write offs of specific accounts receiva final 68,400 The gross accounts receivable t-account can also be written using credit sal sales and payments of accounts receivable. B2% ) BARC Thu 1-2 [Compatibility Mode] A 2+ 1 AaBCDE AaBbCcDc AaBbCcDdE AaBb Cede AaBb CcDdEe Emphasis Heading 1 Gross accounts receivable initial credit sales 60,000 810,000 800,000 1,600 payments received write offs of specific accounts receivable final 68,400 Recall that specific write offs reduce gross accounts receivable but do not alter net accounts receivable) as can be seen in their journal entry 1,600 Allowance for doubtful accounts Accounts receivable Write offs of specific accounts receivable Even if you do not fully understand this explanation of how the gross accounts receivable of $68,400 at the end of 2020 was calculated you should use that figure in the calculations below. The proportion of credit sales which typically default is 0.25% If the firm uses the aging approach, it will use the following information. It has 550,000 of accounts receivable that are current and typically creditors default on 0.5% of those accounts receivable. 58,000 of the accounts receivable are 1-30 days late and creditors typically default on 3% of those receivables. The remaining 510,400 of accounts receivable are 31 or more days late and default rates are typically 15% on those accounts receivable. Show the t-accounts for allowance for doubtful accounts for Paylater using the percentage of credit sale and the aging methods. Which method has highest expenses and lower carnings? Also present the balance sheet entry for accounts receivable at the end of 2020 Remember that in the percentage of credit sales method you first calculate the bad debt expense and then calculate the end of the year level of the allowance for doubtful accounts. For the percentage of receivables and aging methods. you first calculate the end of year allowance and then the bad debt expense. Gross accounts receivable initial 60,000 810,000 crcdit sales 800,000 1,600 payments received write offs of specific accounts receivable final 68,400 Recall that specific write offs reduce gross accounts receivable (but do not alter net accounts receivable) as can be seen in their journal entry 1,600 Allowance for doubtful accounts Accounts receivable 1,600 Write offs of specific accounts receivable Even if you do not fully understand this explanation of how the gross accounts receivable of $68,400 at the end of 2020 was calculated you should use that figure in the calculations below. The proportion of credit sales which typically default is 0.25%. If the firm uses the aging approach, it will use the following information. It has $50,000 of accounts receivable that are current and typically creditors default on 0.5% of those accounts receivable. $8,000 of the accounts receivable are 1-30 days late and creditors typically default on 3% of those receivables. The remaining $10.400 of accounts receivable are 31 or more days late and default rates are typically 15% on those accounts receivable. Show the t-accounts for allowance for doubtful accounts for PayLater using the percentage of credit sale and the aging methods. Which method has highest expenses and lower camnings? Also present the balance sheet entry for accounts receivable at the end of 2020. Remember that in the percentage of credit sales method you first calculate the bad debt expense and then calculate the end of the year level of the allowance for doubtful accounts. For the percentage of receivables and aging methods. you first calculate the end of year allowance and then the bad debt expense. Homework Flve Paxlater Inc. Paxlatex Inc. is an imaginary firm that sells appliances. Below is the balance sheet for Paxlater for 2019. The questions relate to 2020, Balance Sheet for Cinch Inc. Dec 31, 2019 Assets 50,000 Accounts Receivable, less allowance for doubtful accounts of $2,000 Inventories Property, plant and cquipment 58,000 90.000 200,000 Llabilities Accounts payable Long Term Debt 20,000 100,000 Shareholders Equity Common Stock Capital Stock Retained Earnings 57.000 218,000 PayLater sold 5900,000 of appliances during 2020. 90% of Cinch's sales were credit sales. During 2006, 51.600 of uncollectible accounts were written off. Here is a t-account for 2020 for gross accounts receivable for the firm. Gross accounts receivable initial 60.000 sales 900.000 890,000 1.600 payments received write alls of specific accounts receivable final 68,400 The gross accounts receivable t-account can also be written using credit sales in place of sales and payments of accounts receivable