Alpha Company has the following account balances information for fiscal year 2015 &
))) Alpha Company has the following account balances information
for fiscal year 2015 & 2016 (all balances are normal):
Alpha Company
December 31
Accounts 2016 2015
Accounts Receivable $40,000 $32,000
Merchandise Inventory 57,000 50,000
Office Supplies 25,000 20,000
Credit Sales 950,000 740,000
Interest Income 25,000 20,000
Cost of Goods Sold 460,000 385,000
1. What is the FY 2016 accounts receivable turnover ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word times. (Example 1.123 would be entered 1.1 times)
2. What is the FY 2016 days outstanding for accounts receivable ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word days. (Example 1.123 would be entered 1.1 days)
2))) Alpha Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that consists of:
Dollar Value Age of Account Estimated Collectible
$115,000 < 30 days old 98%
65,000 30 to 60 days old 85%
20,000 61 to 120 days old 75%
5,000 > 120 days old 10%
The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $2,500 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the:
1. Accounts Receivable
2. Allowance for Doubtful Accounts
3. Bad Debt Expense
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