Check my work View previous attempt Problem 7-5 (Algo) Receivables; bad debts and returns; Gemstone Products (LO7-4, 7-5) Gemstone Products located in New York City, is one of the world's largest producers of beauty and related products. The company's consolidated balance sheets for the 2016 and 2015 fiscal years included the following ($ in thousands): 2016 2015 Current assets: Receivables, less allowances of $133,425 in 2016 and $89,025 in 2015 $461,900 $441,500 A disclosure note accompanying the financial statements reported the following ($ in thousands) Year Ended 2016 2015 (In thousands) Calculation of account receivables, net: Receivables Less: allowance for doubtful accounts Less: reserve for product returns Trade accounts receivable, net: $ 595, 325 $530,525 (123,125) (77,825) (10,300) (11,200) $ 461,900 $441,500 Assume that the company reported bad debt expense in 2016 of $192,500 and had products returned for credit totaling $187,225 (sales price). Net sales for 2016 were $5,653,800 ($ in thousands). Required: 1. What is the amount of accounts receivable due from customers at the end of 2016 and 2015? 2. What amount of accounts receivable did Gemstone write off during 2016? 3. What is the amount of Gemstone's gross sales for the 2016 fiscal year? 4. Assuming that all sales are made on a credit basis, what is the amount of cash Gemstone collected from customers during the 2016 fiscal year? you receivea partial credit in the previous attempt. Check my work View previous attempt Keceivables Less: allowance for doubtful accounts Less: reserve for product returns Trade accounts receivable, net: $ 55,325 (123, 125) (10,300) $ 461,900 $530,525 (77, 825) (11,200) $441,500 Assume that the company reported bad debt expense in 2016 of $192,500 and had products returned for credit totaling $187,225 (sales price). Net sales for 2016 were $5,653,800 ($ in thousands). Required: 1. What is the amount of accounts receivable due from customers at the end of 2016 and 2015? 2. What amount of accounts receivable did Gemstone write off during 2016? 3. What is the amount of Gemstone's gross sales for the 2016 fiscal year? 4. Assuming that all sales are made on a credit basis, what is the amount of cash Gemstone collected from customers during the 2016 fiscal year? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 4 What amount of accounts receivable did Gemston Products write off during 2016? What is the amount of Gemston Product's gross sales for the 2016 fiscal year? Assuming that all sales are made on a credit basis, what is the amount of cash Gemston Products collected from customers during the 2016 fiscal year? (Enter your answers in thousands.) 2. $ 147,200 3. Accounts receivable write off Gross sales Cash collections 4 Req1 Reg 2 to 4
