E8-4

Wainwright Company

Replace the values marked green from your question

you will get the answer marke

accounts receivable
credit sales
sales return and allowances

75000
913000
43100

a)
uncollectible balance

1100

credit balance
bad debts % accounts receivable

840
11

c)

debit balance
bad debts % accounts receivable

700
9

a.

Account
Bad Debt Expense
accounts receivabl

Debit
1100

b.

Bad Debt Expense

allowance for doubtful accounts

c.

Bad Debt Expense

allowance for doubtful accounts

7,410

7,450

et the answer marked yellow

Credit
1100

7,410

7,450

Replace the values marked green from your question

accounts receivable
accounts receivable
allowance for doubtful accounts
sales revenue
total current assets

accounts receivable turnover

average collection period

you will get the answer mark

2014
3440
3397
43
35226
7506

9.1
40.1

will get the answer marked yellow

2013
4340
4309
31
37690
7243

BYP8-1

a.

b.

c.

Tootsie Roll Industries, Inc

Receivables Turnover Ratio = Net Credit Sales / Average Net Receivables

528,369 / (41,895 + 37,394) / 2 =
13.33 Times

Avg Collection Period = 365 / Receivables Turnover Ratio

365 / 13.33 =
27.38 Days
No significant credit risk were identified in 2011
The company's collection period is very impressive and it does a
good job collection payments. Also, the total number of bad debts
has been decreasing.
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BYP8-2

The Hershey Company and Tootsie Roll Industries, Inc

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