Transcribed image text : 10:117 X Lab 6 spring 2022 four questions The Accounts Receivable balance for Ringo Corporation is $200.000 at May 31, 2022. Before calculating and recording May 2022 had debt expense, the Allowance for Doubtful Accounts has a debit balance of $9,800. Net sales for the month are $1.160,000. An aging of accounts receivable results in a $14,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2022. In the past several years, 2% of net sales have proven uncollectible. If Ringo uses the analysis of receivables method, Bad Debt Expense on the May 2022 Income Statement will be $23.800 $23,200 $14,000 S13,400 2. If Ringo uses the analysis ofreceivables method the allowance for Doubtful Accounts reflected on the May 31, 2022 Balance Sheet will be S23.800 $23.200 -S14,000 $13,400 If Ringo uses the percent of sales method, Bad Debt Expense on the May 2022 Income Statement will be $23.00 $23,200 $14,000 S13,400 If Ringo uses the percent of sales method, the Allowance for Deabtful Accounts reflected on the May 31, 2022 Balance Sheet will be $23.800 523300 $14.000 S13.400 The matching rule, applied under the allowance method, relates to losses from credit sales by stating that Bad Debt Expense should be recorded in the period of the sale. in the period of the loss for an exact amount in the same period as allowed for tax purposes 10:12 7 X Lab 6 spring 2022 If Ringo uses the percent of sales method. Bad Debt Expense on the May 2022 Income Statement will be $23.800 S23,200 S14,000 $13,400 If Ringo uses the percent of sales method, the Allowance for Doubtful Accounts reflected on the May 31, 2022 Balance Sheet will be $23.800. S23,200 $14,000 $13.400 s. The matching rule, applied under the allowance method, relates to losses from credit sales by stating that Bad Debt Expense should be recorded in the period of the sale. in the period of the loss. for an exact amount in the same period as allowed for tax purposes. Suppose that Microsoft sells $4,000,000 of its Xbox 360 game to a Micro Center, Micro Center signs a promissory note that has the following terms annual interest rate of 5% and principal plus interest due in 3 months Assuming that Micro Center repays the entire amount as scheduled after 3 months, what is the Maturity Value of this not receivable? $4,000,000 S4,050,000 $4,200,000 S4,600,000 1. AS10,000, 90-day, 4% note was received on May 4 and that the fiscal year ended on May 31. Interest will be paid by the borrower on the maturity date of the pote. The adjusting entry to record the accrued interest revenue as of May 31 would be famounts rounded to nearest dollar, use 360-day year Debit Interest Receivable 30: Credit Interest Revenue 30 Debit Cash 100, Credit Interest Revenue 100 Debit Interest Receivable 120 Credit Interest Revenue 120 2 Debit Interest Revenue 120. Credit Interest Revenue 120 10:12 ? Lab 6 spring 2022 Debit Cash 100 Credit Interest Revenue 100 Debit interest Receivable 120Credit Interest Revenue 120 Debit Interest Revenue 120; Credit Interest Revenue 120 Problem 1 (12 points) Vinci, Inc.'s auditor observes the following related to Vinci's Cash account balance as of 5/31/22. Use this information to prepare a bank reconciliation for Vinci, Inc. Vinci, Inc.'s 531/22 Cash Taccount shows a balance of $452,000 .Vinci, Inc.'s bank statement dated 5/31/22 shows a balance of S460,000 Vinci, Inc. incorrectly recorded a credit to Cash for $3,400 on a check that it wrote for $4,300. - Vinci, Inc. has deposits of $36,000 that do not yet appear on the bank statement Vinci, Inc. has not yet recorded bank fees of $800 The bank reports that one of Vinci, Inc.'s customer's check was returned NSF. The check was in the amount of $12,800 Vinci, Inc. has not yet reflected this NSF check in its Cash balance. The bank accidentally recorded one of Vinci's 516,000 deposits twice Vinci, Inc. has written 548,000 worth of checks that have not yet cleared the bank Vinci, Inc. las not yet recorded $3,000 of interest revenue related to the bank account .Vinci, Inc. wrote a check and forgot to post the related journal entry to the Taccounts. The joumal entry that Vinci, Inc. forgot to post was Dr. Inventory 8,500 and Cr. Cash 8,500 Bankroto As of 531:22 Herbal, 1/2 Malene, Adjusted bank balance 501 Adjusted books balance 53122 Problem 2 (11 points) The Accounts Receivable balance for Bach Consulting is $4,400,000 as of M12 Refindet 10:12 Lab 6 spring 2022 Problem 2 (11 points) The Accounts Receivable balance for Bach Consulting is $4,400,000 as of May 31, 2022. Before calculating and recording the month's bad debt expense, there is a credit balance in the Allowance for Doubtful Accounts of $80,000. The May 2022 net sales were $30,000,000. In the past several years, % of net sales have proven uncollectible. An aging of accounts receivable results in a $360.000 estimate for the Allowance for Doubtful Accounts as of May 31, 2022 PART A: PERCENT OF SALES METHOD Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts. What adjusting entry does Bach make to record May 2022 Bad Debt Expense? . What is Accounts Receivable, net" on Bach's May 31, 2022 Balance Sheet? What is "Bad Debt Expense" on Bach's May 2022 Income Statement? PART B: ANALYSIS OF RECEIVABLES METHOD Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts. - What adjusting entry does Bach make to record May 2022 Bad Debt Expense? What is Accounts Receivable, net" on Bach's May 31, 2022 Balance Sheet? What is "Bad Debt Expense" on Bach's May 2022 Income Statement? s 10:12 7 X Lab 6 spring 2022 Problem 3 (13 points) Use PVH Corps financial statement information to answer the following questions Provide the following account balances for PVH (4 points Juary 3, 2 Juary 31, 2021 Arco Recher Alle for Defal Account Accents Heels, Which of the above numbers represents the amount that PVH expects to collect from its customers as of January 30, 2022? ( point) Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of January 30, 20222 ( point) Which of the above numbers represents the total amount PVH is owed by customers as of January 30, 2022? (1 point) Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2021. (3 points) Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2021.3 points) PVH Corp. Financial Statements (partial) 10:12 7 X Lab 6 spring 2022 Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2021. (3 points) PVH Corp. Financial Statements (partial) FVH Castillaint Haliar aris less of war ASKETS ula A. 0312 do 120 pada 14 Nates to Calidated Flascio Matara Filmary or piccmusic L.L. 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