Adjusting Cash Flows for Changes in Accounts Receivable Marshall Inc. had beginning balances (January 1) of $200,000 and $5,000 for accounts receivable and the allowance for doubtful accounts, respectively. During the year, the company had the following transactions. Note: Indicate a subtraction in the Operating activities section with a negative sign in the Amount column. Sales Write-off of accounts $900,000 1,000 Cash collections on account receivable 850,000 Bad debt expense recorded 2,800 a. Determine the ending balance (December 31) in accounts receivable and the allowance for doubtful accounts. Accounts receivable, ending balance $ Allowance for doubtful accounts, ending balance $ b. Determine the adjustment to net income in the operating activities section in the statement of cash flows assuming the indirect method is used. Check Amount in the Operating Activities Section Item ÷ $
Adjusting Cash Flows for Changes in Accounts Receivable Marshall Inc. had beginning balances (January 1) of $200,000 and $5,000 for accounts receivable and the allowance for doubtful accounts, respectively. During the year, the company had the following transactions. Note: Indicate a subtraction in the Operating activities section with a negative sign in the Amount column. Sales Write-off of accounts $900,000 1,000 Cash collections on account receivable 850,000 Bad debt expense recorded 2,800 a. Determine the ending balance (December 31) in accounts receivable and the allowance for doubtful accounts. Accounts receivable, ending balance $ Allowance for doubtful accounts, ending balance $ b. Determine the adjustment to net income in the operating activities section in the statement of cash flows assuming the indirect method is used. Check Amount in the Operating Activities Section Item ÷ $
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...
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