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Activity 01

The document presents various accounting scenarios involving cash reporting, accounts receivable, and allowances for doubtful accounts. It includes calculations for cash to be reported on financial statements, cash realizable values, and adjustments for bad debt expenses. Each scenario provides specific figures and requires understanding of accounting principles to determine the correct financial position reporting.

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Luna, Annalie Ramirez
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27 views1 page

Activity 01

The document presents various accounting scenarios involving cash reporting, accounts receivable, and allowances for doubtful accounts. It includes calculations for cash to be reported on financial statements, cash realizable values, and adjustments for bad debt expenses. Each scenario provides specific figures and requires understanding of accounting principles to determine the correct financial position reporting.

Uploaded by

Luna, Annalie Ramirez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Consider the following: Cash in Bank – checking account of $13,500, Cash on


hand of $500, Post-dated checks received totaling $3,500, and Certificates of
deposit totaling $124,000. How much should be reported as cash in the
statement of financial position?

2. Kennison Company has cash in bank of $10,000, restricted cash in a separate


account of $3,000, and a bank overdraft in an account at another bank of
$1,000. Kennison should report cash of

3. Vivian, Inc had net sales in 2011 of €700,000. At December 31, 2010, before
adjusting entries, the balances in selected accounts were: accounts
receivable €125,000 debit, and allowance for doubtful accounts €1,200 debit.
Vivian estimates that 2% of its net accounts receivable will prove to be
uncollectable. What is the cash realizable value of the receivables reported
on the statement of financial position at December 31, 2011?

4. Wellington Corp. has outstanding accounts receivable totaling $2.54 million as of


December 31 and sales on credit during the year of $12.8 million. There is
also a debit balance of $6,000 in the allowance for doubtful accounts. If the
company estimates that 1% of its net credit sales will be uncollectible, what
will be the balance in the allowance for doubtful accounts after the year-end
adjustment to record bad debt expense?

5. At the close of its first year of operations, December 31, 2010, Ming Company
had accounts receivable of $540,000, after deducting the related allowance
for doubtful accounts. During 2010, the company had charges to bad debt
expense of $90,000 and wrote off, as uncollectible, accounts receivable of
$40,000. What should the company report on its statement of financial
position at December 31, 2010, as accounts receivable before the allowance
for doubtful accounts?

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