Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial statem
Posted: Wed Mar 09, 2022 8:22 am
Minta Corporation is a leading manufacturer of sports apparel,
shoes, and equipment. The company’s 2017 financial statements
contain the following information ($ in millions):
A note disclosed that the allowance for uncollectible accounts had
a balance of $30 million and $54 million at the end of 2017 and
2016, respectively. Bad debt expense for 2017 was $51 million.
Assume that all sales are made on a credit basis.
Required:
1. What is the amount of gross (total)
accounts receivable due from customers at the end of 2017 and
2016?
2. What is the amount of bad debt write-offs
during 2017?
3. Analyze changes in the following Accounts
Receivable (gross) T-account to calculate the amount of cash
received from customers during 2017.
4. Analyze changes in the following Accounts
Receivable (net) T-account to calculate the amount of cash received
from customers during 2017.
shoes, and equipment. The company’s 2017 financial statements
contain the following information ($ in millions):
A note disclosed that the allowance for uncollectible accounts had
a balance of $30 million and $54 million at the end of 2017 and
2016, respectively. Bad debt expense for 2017 was $51 million.
Assume that all sales are made on a credit basis.
Required:
1. What is the amount of gross (total)
accounts receivable due from customers at the end of 2017 and
2016?
2. What is the amount of bad debt write-offs
during 2017?
3. Analyze changes in the following Accounts
Receivable (gross) T-account to calculate the amount of cash
received from customers during 2017.
4. Analyze changes in the following Accounts
Receivable (net) T-account to calculate the amount of cash received
from customers during 2017.