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Please just answer 4,5,6 During 2019 the following selected summary transactions occurred for Zoff Ltd: a) Sales, $50,000,000 - of which 90% were on account,
Please just answer 4,5,6
During 2019 the following selected summary transactions occurred for Zoff Ltd: a) Sales, $50,000,000 - of which 90% were on account, terms net 30. b) Sales returns and allowances, $500,000 - 10% related to cash sales, and 90% related to sales on account. c) Cash collections of $42,000,000 from account receivable customers. d) Write-offs of account receivable deemed uncollectible, $1,100,000. e) Cash recoveries of account receivable previously written off, $60,000. Additional information: Percentage of credit sale loss for fiscal 2019: 2.5% Account receivable balance, December 31, 2018: $7,000,000. AFDA balance: As at December 31, 2018... $140,000 Required: [Show all your calculations to receive full points) 1. Prepare journal entries for summary transactions a) to e), above. (8 points) 4. Compute the Company's Gross Profit for the year ended December 31, 2019. Assume COGS is $29,000,000. [3 points] 5. Evaluate Zoff's Receivables Turnover Ratio (3 points) 6. If Zoff wrote-off uncollectible receivables totaling $1,000,000 on during the year, would the Gross Profit and Receivables Turnover Ratio you calculated in Requirements 3 and 4 be different? Explain your answers (no calculation is required). (4 points]Step by Step Solution
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