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Calculate the net realizable value of accounts receivable at December 31, 2014

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A portion of the current assets section of the December 31, 2013, balance sheet for Gibbs Co. is presented here;Accounts receivable $ 20,600;Less: Allowance for bad debts (3,600) = $ 17,000;The company's accounting records revealed the following information for the year ended December 31, 2014;Sales (all on account) $ 169,000;Cash collections from customers 139,000;Accounts written off 3,700;Bad debts expense (accrued at 12/31/14) $5,500;Required;Calculate the net realizable value of accounts receivable at December 31, 2014, and prepare the appropriate balance sheet presentation for Gibbs Co., as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.) (Amounts to be deducted should be indicated with minus sign.);At December 31, 2014;Account receivable: what amount here?;Less: Allowance for bad debts: (5400);result here;Porter, Inc., acquired a machine that cost $372,000 on October 1, 2013. The machine is expected to have a five-year useful life and an estimated salvage value of $34,000 at the end of its life. Porter, Inc., uses the calendar year for financial reporting. Depreciation expense for one-fourth of a year was recorded in 2013.;Required;a. Using the straight-line depreciation method, calculate the depreciation expense to be recognized in the income statement for the year ended December 31, 2015, and the balance of the Accumulated Depreciation account as of December 31, 2015. (Note: This is the third calendar year in which the asset has been used.);Depreciation expense (Amount in here);Accumulated depreciation (Amount in here);b. Using the double-declining-balance depreciation method, calculate the depreciation expense for the year ended December 31, 2015, and the net book value of the machine at that date.;Depreciation expense (Amount in here);Net book value (Amount in here);Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co, for $99,000. The appraised value of the land is $21,000, and the appraised value of the building is $106,000.;a. Assuming that the building is razed at a cost of $11,000 so the land can be used for employee parking, what cost should Dorsey Co. record for the land.;Cost of land (Amount here)

 

Paper#20646 | Written in 18-Jul-2015

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