Part 2:
The Swifty Corporation manufactures sweaters for sale to athletic-wear retailers. The following information was available on Swifty for the years ended December 31, 2019 and 2020: 12/31/19 12/31/20 Cash $ 18,100 $ 15,700 Accounts receivable 85,000 Allowance for doubtful accounts 9,200 Inventory 96,500 92,200 Current liabilities 81,500 87,500 Total credit sales 615,000 565,000 Collections on accounts receivable 431,000 491,000 During 2020, Swifty had the following transactions: 1. 2. On June 1, 2020, sales of $80,000 to a major customer were settled, with Swifty accepting an $80,000, one-year note bearing 6% Interest that is payable at maturity. The $80,000 is not included in the total credit sales amount above. Swifty factors some accounts receivable at the end of the year. Accounts totalling $70,000 are transferred to Windsor Inc., with recourse. Windsor retains 5% of the balances, and will receive the collections directly from Swifty's customers. Swifty is assessed a finance charge of 6% on this transfer. The fair value of the recourse obligation is $7,000. Swifty wrote off $3,600 of accounts receivable during 2020. Based on the latest available information, the 2020 allowance for doubtful accounts should have a balance of $12,100 at December 31, 2020. 3. Additional Information: Included in the cash balance at December 31, 2020, are the following: a chequing account with a balance of $9, 200, postage stamps of $100, petty cash of $200, coins and currency on hand of $3,500, and postdated cheques from customers of $2,700. Swifty is a private company that follows ASPE Prepare the journal entry for the sale to the customer from June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Prepare the current assets section of Swifty's statement of financial position at December 31, 2020. (List Current Assets in order of liquidity.) THE Swifty Corporation Statement of financial position (Partial) The Swifty Corporation manufactures sweaters for sale to athletic-wear retailers. The following information was available on Swifty for the years ended December 31, 2019 and 2020: 12/31/19 12/31/20 Cash $ 18,100 $ 15,700 Accounts receivable 85,000 Allowance for doubtful accounts 9,200 Inventory 96,500 92,200 Current liabilities 81,500 87,500 Total credit sales 615,000 565,000 Collections on accounts receivable 431,000 491,000 During 2020, Swifty had the following transactions: 1. 2. On June 1, 2020, sales of $80,000 to a major customer were settled, with Swifty accepting an $80,000, one-year note bearing 6% Interest that is payable at maturity. The $80,000 is not included in the total credit sales amount above. Swifty factors some accounts receivable at the end of the year. Accounts totalling $70,000 are transferred to Windsor Inc., with recourse. Windsor retains 5% of the balances, and will receive the collections directly from Swifty's customers. Swifty is assessed a finance charge of 6% on this transfer. The fair value of the recourse obligation is $7,000. Swifty wrote off $3,600 of accounts receivable during 2020. Based on the latest available information, the 2020 allowance for doubtful accounts should have a balance of $12,100 at December 31, 2020. 3. Additional Information: Included in the cash balance at December 31, 2020, are the following: a chequing account with a balance of $9, 200, postage stamps of $100, petty cash of $200, coins and currency on hand of $3,500, and postdated cheques from customers of $2,700. Swifty is a private company that follows ASPE Prepare the journal entry for the sale to the customer from June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Prepare the current assets section of Swifty's statement of financial position at December 31, 2020. (List Current Assets in order of liquidity.) THE Swifty Corporation Statement of financial position (Partial)
