Gemstone Products located in New York City, is one of the world's largest producers of...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Gemstone Products located in New York City, is one of the world's largest producers of beauty and related products. The company's consolidated balance sheets for the 2016 and 2015 fiscal years included the following ($ in thousands):
2016
2015
Current assets:
Receivables, less allowances of $133,735 in 2016 and $89,335 in 2015
$ 462,300
$ 441,700
A disclosure note accompanying the financial statements reported the following ($ in thousands)
Year Ended
2016 (In thousands)
2015 (In thousands)
Calculation of account receivables, net:
Receivables
$ 596,035
$ 531,035
Less: allowance for doubtful accounts
(123,155)
(77,855)
Less: reserve for product returns
(10,580)
(11,480)
Trade accounts receivable, net:
$ 462,300
$ 441,700
Assume that the company reported bad debt expense in 2016 of $192,700 and had products returned for credit totaling $187,255 (sales price). Net sales for 2016 were $5,663,800 ($ in thousands).
Required:
What is the amount of accounts receivable due from customers at the end of 2016 and 2015?
What amount of accounts receivable did Gemstone write off during 2016?
What is the amount of Gemstone's gross sales for the 2016 fiscal year?
Assuming that all sales are made on a credit basis, what is the amount of cash Gemstone collected from customers during the 2016 fiscal year?
What is the amount of accounts receivable due from customers at the end of 2016 and 2015 ? Note: Enter your answers in thousands. What amount of accounts receivable did Gemston Products write off during 2016? What is the amount of Gemston Product's gross sales for the 2016 fiscal year? Assuming that all sales are made on a credit basis, what is the amount of cash Gemston Products collected from customers during the 2016 fiscal year? Note: Enter your answers in thousands
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!