Question
Could you please help me solve the accounting below? Please see the attached file. Please help to do it step-by-step with all the workings and
Could you please help me solve the accounting below? Please see the attached file. Please help to do it step-by-step with all the workings and solutions. Thank you very much!
On its recent financial statements, Hassell Fine Foods reported the following information about net sales revenue and accounts receivable (amounts in thousands):
Current Year | Prior Year | |||
Accounts receivable, net of allowances of $223 and $187 | $ | 14,289 | $ | 12,038 |
Net revenues | 62,170 | 52,872 | ||
|
According to its Form 10-K, Hassell recorded bad debt expense of $102 and did not reinstate any previously written-off accounts during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.)
Required:
1. What amount of bad debts was written off during the current year? (Enter your answers in thousands not in dollars.)
2. Based on your answer to requirement (1), solve for cash collected from customers for the current year, assuming that all of Hassells sales during the period were on open account. (Enter your answers in thousands not in dollars.)
Allowance for Doubtful Accounts Beg. bal. End. bal
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