7.What would the quick ratio be if Ryansold all of its inventory for $5,000 cash?
8.How would the current ratio be affected if Ryanpaid off its wages and taxes?
9.Brocton Inc. sells to customers only on credit. For the year ended December 31, 2010, the following information is provided:
Sales revenue
|
$550,000
|
Accounts receivable, 1/01/10
|
240,000
|
Allowance for doubtful accounts, 12/31/10(before adjustment for bad debts)
|
600
|
Collections during 2010
|
580,000
|
Accounts written off as uncollectible during 2010
|
14,000
|
Sales returns
|
6,000
|
A. Determine the balance of the Accounts Receivable account at December 31, 2010.
B.If Brocton estimates bad debts at 3% of net credit sales, how much is bad debt expense?
10.Before adjusting entries, Martin’s accounts receivable and allowance for doubtful accounts are $65,000 and $1,500 (debit balance), respectively. Using an aging schedule of accounts receivable, it is determined that $4,000 of the accounts receivable would probably be uncollectible. Calculate bad debts expense to be reported on Martin’s current year’s income statement?
11.The balances of the allowance for doubtful accounts on the balance sheets dated December 31 of 2010 and 2009 were $1,000 and $4,000, respectively. During 2010, bad debts expense was $9,000. What is the amount of accounts receivable that were written off as uncollectible during 2010?
12.
The following information is provided for Garland Inc. Answer the questions that follow.
Balance Sheet
|
2010
|
2009
|
|
Cash and cash equivalents
|
$98,000
|
$114,000
|
|
Accounts Receivables, less allowance for doubtful accounts of $3,000 (2010) and $1,800 (2009)
|
165,000
|
132,000
|
|
|
|
|
A.How much is the balance in the Accounts Receivable account at December 31, 2010?
B.What is the amount of the Net Realizable Value of the receivables at December 31, 2010?
13.The balances of the allowance for doubtful accounts on the balance sheets dated December 31 of 2010 and 2009 were $21,000 and $14,000, respectively. During 2010, $13,000 of accounts receivable were written off as uncollectible. How much bad debts expense is recognized during 2010?