mba fa 《financial accounting》 习题答案6.pdf

CHAPTER 6 THE CURRENT ASSET CLASSIFICATION, CASH, AND ACCOUNTS RECEIVABLE BRIEF EXERCISES BE6–1 a. Total Accounts Receivable = Net Receivables + Allowance for Uncollectibles 2003 Total Accounts Receivable = $2,650 + $82 2003 Total Accounts Receivable = $2,732 2003 Uncollectibles as a Percentage of Total Accounts Receivable = $82/$2,732 = 3.0% 2002 Total Accounts Receivable = $2,513 + $90 2002 Total Accounts Receivable = $2,603 2002 Uncollectibles as a Percentage of Total Accounts Receivable = $90/$2,603 = 3.5% Therefore, the percentage increased. b. Since Emerson Electric is using the percentage of accounts receivable method (balance sheet approach), bad debt expense for 2003 would be the amount needed to adjust the allowance for doubtful accounts to $82. This number (bad debt expense) is impacted by the balance in the uncollectible account at the beginning of the year and the write-offs taken during the year by Emerson Electric. BE6–2 a. 2002: Ending Allowance Balance = Beginning Allowance Balance + Bad Debt Charge – Write-Offs + Recoveries $5,500 = $4,792 + 3,788 – $3,722 + 642 Bad Debt Expense for 2002 = $3,788 2003: Ending Allowance Balance = Beginning Allowance Balance + Bad Debt Charge – Write-Offs + Recoveries $6,256 = $5,500 + 4,400 – $4,492 + 848 Bad Debt Expense for 2003 = $4,400 b. 2002: $3,722 write-offs; $3,080 write-offs, net of recoveries 2003: $4,492 write-offs; $3,644 write-offs, net of recoveries