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The following information relates to Rem Corp\'s accounts receivable for 2015: A

ID: 2419458 • Letter: T

Question

The following information relates to Rem Corp's accounts receivable for 2015:

Accounts receivable, 1/1/15                 430,000

Credit sales for 2015                          1,800,100

Sales returns for 2015                             52,000

Accounts written off during 2015             26,800

Collections from customers during 2015 1,450,000

Estimated future sales returns at 12/31/15 33,500

Estimated uncollectible accounts at 12/31/15 73,250

Required:What amount should Rem report for accounts receivable, before allowances for sales returns and uncollectible accounts, at December 31, 2015?

Bob Smith borrowed $200,000 on January 1, 2015. The interest rate of 8% is compounded semiannually to be repaid January 1, 2025. To repay this Bob wants to start making five equal annual deposits into fund that earns 6% annum on January 1, 2020.

Required:What is the amount of the five annual deposits that Bob needs to make?

Explanation / Answer

Part 1

Answer 701,300

Accounts receivable, 1/1/1 430000 ADD Credit sales for 2015 1800100 Less Sales returns for 2015 -52000 Less Accounts written off during 2015 -26800 Less Collections from customers during 2015 -1450000 amount should Rem report for accounts receivable 701300