On its recent financial statements, Hassell Fine Foods reported the following in

Question

On its recent financial statements, Hassell Fine Foods reported the following information about net sales revenue and accounts receivable (amounts in thousands):

According to its Form 10-K, Hassell recorded bad debt expense of $108 and did not reinstate any previously written-off accounts during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.)

Required:

1. What amount of bad debts was written off during the current year? (Enter your answers in thousands not in dollars.)

2. Based on your answer to requirement (1), solve for cash collected from customers for the current year, assuming that all of Hassell’s sales during the period were on open account. (Enter your answers in thousands not in dollars.)

Current Year Prior
Year Accounts receivable, net of allowances of $253 and $217 $ 14,589 $ 12,338 Net revenues 62,920 53,622

Explanation / Answer

1 Allowance for Doubtful accounts Beg. Bal. 217 Write off 72 108 Bad debt expene End. Bal. 253 Amount of bad debts was written off during the current year $72 thousands 2 Accounts Receivable Beg. Bal. 12555 Sales 62920 72 Write off 60561 Cash collections End. Bal. 14842 Cash collected from customers $60561 thousands

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.