What amount do customers owe ABC at each of the year-ends 2008 through 2010?

All posts in Business
You are here: Home / Posts / All posts in Business
The general ledger account for Accounts
Categories: Business
Comments Off on The general ledger account for Accounts

The general ledger account for Accounts Receivable shows a debit balance of $40,000. The Allowance for Uncollectible Accounts has a credit balance of $2,000. Net sales for the year were $250,000. In the past, 3 percent of net sales have proved uncollectible. An aging of accounts receivable results in an estimate of $9,000 of uncollectible accounts receivable.

(1) Uncollectible Accounts Expense
(2) the ending balance of the Allowance for Uncollectible Accounts using (a) the Percentage of Net Sales method and (b) the Accounts Receivable Aging method.
The Flower Shoppe
Categories: Business
Comments Off on The Flower Shoppe

You are an accountant for The Flower Shoppe. Your supervisor has asked you to help her prepare the year-end financial statements. Before you do, she wants to ensure that you understand some main points. Please see Excel attachment.

A. Explain the following:
1. The elements of the balance sheet, their purposes, and how to measure them
2. The elements and purpose of the statement of changes in stockholder’s equity

B. Based on the adjusted trial balance and additional information, prepare the following in an Excel file to give to the controller for review:
1. Balance sheet
2. Income statement
3. Statement of retained earnings
4. Statement of cash flows

The following is additional information about the Flower Shoppe that is needed for financial-statement preparation:

Net income for the year ended December 31, 2008 was $10,845.

Changes from the prior year’s balances included the following:
a decrease in accounts receivable of $300.
a decrease in inventory of $450.
an increase in accounts payable of $250.
an decrease in accrued expenses of $100.
Land was purchased in April for $3,500.
Cash as of January 1, 2008 was $10,105.
Balance at beginning of period
Categories: Business
Comments Off on Balance at beginning of period

Following is the current asset section from the ABC, Inc. balance sheet

As of December 31 ($000s) 2010 2009 2008

Cash and cash equivalents 313454 459871 396290
Accounts receivable (less allowances
for doubt accounts of $24,552, $25,850
and $26,481 respectively) 762895 624910 589416
Inventories—net 991577 889679 1009932
Prepaid expenses and other assets 87125 88364 73359
Deferred income statement 44627 42023 52556
Prepaid income taxes 38393 26668 22556
Total Current Assets 2238071 2131515 2144109

ABC, Inc. reports the following footnote relating to its receivables
As of December 31 ($000s) 2010 2009 2008

Balance at beginning of period 25850 26481 25830
Provision for uncollectable accounts 6718 10748 12924
Write–off of uncollectable accounts, less recoveries -8302 -12254 -11501
Foreign currency translation impact 286 875 -772
Balance at end of period 24552 25850 26481

a. What amount do customers owe ABC at each of the year-ends 2008 through 2010?
b. What percentage of those accounts receivable on a does ABC feel are uncollectable? (Hint: prepare of accounts = Allowance for uncollectable accounts / Gross accounts receivable).
c. What amount of bad debts expense did ABC report in its income statement for each of the years 2008 through 2010?
d. Explain the changes in the balance of the allowance for uncollectable accounts since 2008. Specifically, did the allowance increase or decrease as a percentage of gross accounts receivable, and why?
e. If ABC had kept its 2010 allowance for uncollectable accounts at the same percentage of gross accounts receivable as it was in 2008, by what amount would its profit have changed (ignore taxes)? Explain
f. Overall, what is your assessment of ABC’s allowance for uncollectable accounts and the related 2010, 2009, 2008, respectively, and the net earnings attributable to the company were $510,865, $430,466 and $475,355 ($ 000s).

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages

Order your essay today and save 10% with the discount code tCPCOVID10