Horton Housewares\' accounts receivable decreased during the year by $17.0 milli

Question

Horton Housewares' accounts receivable decreased during the year by $17.0 million.

What is the amount of cash Horton received from customers during the reporting period if its sales were $51.0 million? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

Prepare a summary entry that represents the net effect of the selling and collection activities during the reporting period. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the net effect of the selling and collection activities.

2. LaRoe Lawns’ inventory increased during the year by $7.3 million. Its accounts payable increased by $5.5 million during the same period.

What is the amount of cash LaRoe paid to suppliers of merchandise during the reporting period if its cost of goods sold was $60.0 million? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for an event, select "No journal entry required" in the first account field.) Record the net effect of merchandise purchases.

Horton Housewares' accounts receivable decreased during the year by $17.0 million.

Explanation / Answer

Ans. 1 a Cash Received from Customer: 68 million b Cash 68 Accounts receivable 17 Sales Revenue 51 *Cash = Accounts receivable + sales revenue Ans. 2 a Cash paid to Supplier: 61.8 million b Cost of Goods Sold 60 Inventory 7.3 Accounts Payable 5.5 Cash 61.8 * Cash = Cost of goods sold + inventory - Accounts Payable

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

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