Group Assignment Missing information
The following selected financial information is available for three companies.
|
Bell |
Card |
Zore |
|
|
Total sales |
$125,000 |
$210,000 |
? |
|
Cash sales |
? |
26,000 |
$120,000 |
|
Sales on account |
40,000 |
? |
75,000 |
|
Accounts receivable, January 1, 2012 |
6,200 |
42,000 |
? |
|
Accounts receivable, December 31, 2012 |
5,600 |
48,000 |
7,500 |
|
Allowance for doubtful accounts, January 1, 2012 |
? |
? |
405 |
|
Allowance for doubtful accounts, December 31, 2012 |
224 |
1,680 |
? |
|
Uncollectible accounts expense, 2012 |
242 |
1,200 |
395 |
|
Uncollectible accounts written off |
204 |
1,360 |
365 |
|
Collections of accounts receivable, 2012 |
? |
? |
75,235 |
Required
a. Divide the class into three sections and divide each section into groups of three to five students. Assign one of the companies to each of the sections.
Group Tasks
(1) Determine the missing amounts for your company.
(2) Determine the percentage of accounts receivable estimated to be uncollectible at the end of 2011 and 2012 for your company.
(3) Determine the percentage of total sales that are sales on account for your company.
(4) Determine the accounts receivable turnover for your company.
Class Discussion
b. Have a representative of each section put the missing information on the board and explain how it was determined.
c. Which company has the highest percentage of sales that are on account?
d. Which company is doing the best job of collecting its accounts receivable? What procedures and policies can a company use to better collect its accounts receivable?