what amount of cash was collected by ferrell’s during 2014? course hero

Why don't we want the uncollectible amount?

We don't want the uncollectible amount because it's not cash.

How to convert cash to accrual?

The general rule to convert from cash to accrual is to add decreases in liabilities and increases in assets, and subtract increases in liabilities and decreases in assets. To determine whether there is an increase or decrease, subtract the beginning balance from the ending balance.

What is 20x5 royalty revenue?

20X5 royalty revenue is the amount earned in 20X5, regardless of when it is received.

How much did Zeta write off in 20X1?

Zeta wrote off uncollectible accounts totaling $20,000 during 20X1. Under the cash basis of accounting, Zeta would have reported 20X1 sales of:

How much is royalties expense for 20x6?

Royalty expense for 20X6 equals 15% of sales for the year 20X6, regardless of when the royalties are paid. The $40,000 paid on September 30, 20X6 applies to the sales in the first half of 20X6 (January—June).

What is the basis of sales?

Under the cash basis of accounting, sales equals cash collections.

Does a decrease in accounts receivable result in increased revenue?

Thus, a decreased accounts receivable balance would result in increased revenue/income. Therefore, the answer for this account is No. A decrease in the accrued expenses account would generally mean cash was paid on some expenses. Under the cash basis, when the cash is paid the expense is recorded (Dr. Expense, Cr.