Minta Corporation, is a leading manufacturer of sports apparel, shoes, and equipment. The company's 2020 financial statements contain the following information ($ in millions): Balance sheets: Accounts receivable, net Allowance for uncollectible accounts Income statements: Sales revenue Statement of Cash Flows: Amortization, impairment and other Decrease in accounts receivable Assume that all sales are made on a credit basis. 2020 $ 3,794 233 40,348 417 1,258 2019 $ 5,317 87 Required: 1. What is the amount of gross (total) accounts receivable due from customers at the end of 2020 and 2019? 2. Assume that bad debt expense is included in "amortization, impairment and other," such that the 2020 decrease in accounts receivable of $1,258 reflects only the difference between sales and collections. Prepare a T account that depicts how sales, collections, bad debt expense, and writeoffs of bad debts affect the balance of net accounts receivable with a debit, a credit or not at all, and estimate Minta's 2020 bad debt expense. 3. Prepare a T account that depicts how bad debt expense and writeoffs of bad debts affect the balance of the allowance for uncollectible accounts with a debit, credit or not at all, and estimate the amount of bad debts written off by Minta during 2020. received from 4 Analyze changes in the unts receivable unt to calculate the amount of c during
Minta Corporation, is a leading manufacturer of sports apparel, shoes, and equipment. The company's 2020 financial statements contain the following information ($ in millions): Balance sheets: Accounts receivable, net Allowance for uncollectible accounts Income statements: Sales revenue Statement of Cash Flows: Amortization, impairment and other Decrease in accounts receivable Assume that all sales are made on a credit basis. 2020 $ 3,794 233 40,348 417 1,258 2019 $ 5,317 87 Required: 1. What is the amount of gross (total) accounts receivable due from customers at the end of 2020 and 2019? 2. Assume that bad debt expense is included in "amortization, impairment and other," such that the 2020 decrease in accounts receivable of $1,258 reflects only the difference between sales and collections. Prepare a T account that depicts how sales, collections, bad debt expense, and writeoffs of bad debts affect the balance of net accounts receivable with a debit, a credit or not at all, and estimate Minta's 2020 bad debt expense. 3. Prepare a T account that depicts how bad debt expense and writeoffs of bad debts affect the balance of the allowance for uncollectible accounts with a debit, credit or not at all, and estimate the amount of bad debts written off by Minta during 2020. received from 4 Analyze changes in the unts receivable unt to calculate the amount of c during
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Minta Corporation, is a leading manufacturer of sports apparel, shoes, and equipment. The company's 2020 financial statements
contain the following information ($ in millions):
Balance sheets:
Accounts receivable, net
Allowance for uncollectible accounts
Income statements:
Sales revenue
Statement of Cash Flows:
Amortization, impairment and other
Decrease in accounts receivable
Assume that all sales are made on a credit basis.
Required 1
2020
Required:
1. What is the amount of gross (total) accounts receivable due from customers at the end of 2020 and 2019?
2. Assume that bad debt expense is included in "amortization, impairment and other," such that the 2020 decrease in accounts
receivable of $1,258 reflects only the difference between sales and collections. Prepare a T account that depicts how sales,
collections, bad debt expense, and writeoffs of bad debts affect the balance of net accounts receivable with a debit, a credit or
not at all, and estimate Minta's 2020 bad debt expense.
3. Prepare a T account that depicts how bad debt expense and writeoffs of bad debts affect the balance of the allowance for
uncollectible accounts with a debit, credit or not at all, and estimate the amount of bad debts written off by Minta during 2020.
4. Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during
2020.
5. Analyze changes in net accounts receivable to calculate the amount of cash received from customers during 2020.
$3,794
233
$ 40,348
417
1,258
Complete this question by entering your answers in the tabs below.
Accounts receivable, gross
2020
2019
Required 2 Required 3 Required 4 Required 5
2019
$ 5,317
87
What is the amount of gross (total) accounts receivable due from customers at the end of 2020 and 2019?
Note: Enter your answers in millions.
< Required 1
Required 2 >
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