Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hawky Dawky Ltd. began operations on July 1, 2020 and had the following sales and collection activities during 2020: Sale to Customer 1 on August

Hawky Dawky Ltd. began operations on July 1, 2020 and had the following sales and collection activities during 2020:

Sale to Customer 1 on August 1, 2020 $ 100000

Collections from Customer 1 during the year 84000

Sale to Customer 2 on November 1, 2020 122000

Collections from Customer 2 during the year 80000

Sale to Customer 3 on December 15, 2020 108000

Collections from Customer 3 during the year 35000

There were no other transactions during the year. Hawky Dawky Ltd. offers its customers terms of 2/10 net 30. Assume that any amounts customers paid was after the 10-day discount period.

Hawky Dawky estimates that the likelihood of not being able to collect an accounts receivable is as follows

Accounts not yet due 1 %

Accounts overdue but less than 90 days overdue 4 %

Accounts overdue 90 days or more 17 %

Calculate the net balance of accounts receivable at the end of the year (December 31, 2020).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel

4th Canadian Edition

0470155353, 978-0470155356

More Books

Students also viewed these Accounting questions

Question

Define and describe the Lifelong Learning Plan (LLP)?

Answered: 1 week ago