A company has the following balances on December 31, 2021, after year-end adjustments: Accounts Receivable = $62,300; Allowance for Uncollectible Accounts = $6,500.Calculate the net realizable value of accounts receivable t realizable

Answers

Answer 1
Answer:

Answer:

$55,800

Explanation:

The computation of the net realizable value of accounts receivable is shown below:

Net realizable value of account receivable = Account receivable - Allowance for Uncollectible Accounts

= $62,300 - $6,500

= $55,800

By deducting the allowance for uncollectible accounts from the account receivable so that the net realizable value of the account receivable


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Faeber Textile Company frequently factors its accounts receivable. During 2019, Faeber made credit sales of $100,000 to customers, under terms of 2/10, n/30. Faeber records its credit sales using gross price. In 2019, Faeber sold $70,000 of these receivables to a factor. The factor remitted 90% of the accounts receivable factored and charged a 12% commission on the gross amount of the factored receivables. The factoring agreement also requires Faeber to be responsible for any cash discounts taken by customers upon payment of the factored receivables. Faeber is charged for these cash discounts upon reimbursement by the factor. During 2019, the factor collected the remaining amount of the factored receivables, minus the 2% discount on 94% of the collected receivables, and returned the balance owed to Faeber. Faeber collected the remaining amount of the unfactored accounts receivable, minus the 2% discount on 96% of the collected receivables. Required: Prepare all the journal entries necessary for Faeber to record the preceding information.

Answers

Answer:

Faeber Textile Company frequently factors its accounts receivable. During 2019, Faeber made credit sales of $100,000 to customers, under terms of 2/10, n/30. Faeber records its credit sales using gross price.

Dr Accounts receivable 100,000

    Cr Sales revenue 100,000

In 2019, Faeber sold $70,000 of these receivables to a factor. The factor remitted 90% of the accounts receivable factored and charged a 12% commission on the gross amount of the factored receivables.

Dr Cash 54,600

Dr Factoring expense 8,400 (= $70,000 x 12%)

Dr Factoring receivables 7,000

    Cr Accounts receivable 70,000

The factoring agreement also requires Faeber to be responsible for any cash discounts taken by customers upon payment of the factored receivables. Faeber is charged for these cash discounts upon reimbursement by the factor. During 2019, the factor collected the remaining amount of the factored receivables, minus the 2% discount on 94% of the collected receivables, and returned the balance owed to Faeber.

Dr Cash 5,684 (=$7,000 - $1,316)

Dr Sales discounts 1,316 (= $70,000 x 94% x 2%)

    Cr Factoring receivables 7,000

Faeber collected the remaining amount of the unfactored accounts receivable, minus the 2% discount on 96% of the collected receivables.

Dr Cash 29,424 (= $30,000 - $576)

Dr Sales discounts 576 (= $30,000 x 96% x 2%)

    Cr Accounts receivable 30,000

4% of the accounts receivable were collected at 100%, and 96% were collected at 98%.

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income $85,800
Depreciation expense 12,500
Gain on sale of land 8,000
Increase in merchandise inventory 2,550
Increase in accounts payable 6,650

a. $37,400.
b. $13,150.
c. $94,400.
d. $14,150.
e. $29,400.

Answers

Answer:

c. $94,400

Explanation:

Net cash provided or used by operating activities is computed as see below;

Net cash provided or used by operating activities = Net income + Depreciation expense - Gain on sale of land - Increase in merchandise inventory + Increase in accounts payable

Net cash provided or used by operating activities = $85,800 + $12,500 - $8,000 - $2,550 + $6,650

Net cash provided or used by operating activities = $94,400

Omnidata uses the annualized income method to determine its quarterly federal income tax payments. It had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). What is Omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment?

Answers

Answer: $300,000

Explanation:

Given that,

Taxable income,

First quarter = $100,000

Second quarter = $50,000

Third quarter = $90,000

we need to annualized the cumulative taxable income of first half of the year that will have taxable income for the first and second quarters.

Annualizing the cumulative taxable income:

= 2 × (First quarter taxable income + Second quarter taxable income)  

= 2 × ($100,000 + $50,000)

= $300,000

Therefore, Omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment is $300,000.

A hedger takes a long position in a futures contract on a commodity on November 1, 2012 to hedge an exposure on March 1, 2013. The initial futures price is $60. On December 31, 2012 the futures price is $61. On March 1, 2013 it is $64. The contract is closed out on March 1, 2013. What gain is recognized in the accounting year January 1 to December 31, 2013

Answers

Answer:

Gain recognized = $3,000

Explanation:

Continuation is"Each contract is on 1, 000 units of the commodity."

Gain in accounting year Jan 1 to Dec 31, 2013 is the total gain the accounting year. Gain recognized = (Price on March 1, 2013 - Price on Dec 31, 2012) * Total Contract

Gain recognized = (64 - 61) * 1000

Gain recognized = 3 * 1000

Gain recognized = $3,000

Elenor Company sells 400 units of inventory for $40 each. The inventory originally cost Elenor $26 each. What is Elenor’s gross profit on this transaction?

Answers

Answer:

$5,600

Explanation:

Data provided in the question:

Number of units of inventory sold = 400 units

Selling cost of the inventory = $40 each

Original cost of the inventory = $26 each

Now,

Total inventory cost of the units sold = 400 × $26

= $10,400

Total selling cost of the inventory sold = 400 × $40

= $16,000

Therefore,

Elenor’s gross profit on this transaction

= Total selling cost of the inventory sold - Total inventory cost of the units sold

= $16,000 - $10,400

= $5,600

Final answer:

Elenor's gross profit is calculated by subtracting the total cost of inventory from the total sales revenue. With 400 units sold at $40 each and a cost of $26 each, the gross profit is $5,600.

Explanation:

To calculate Elenor's gross profit on the transaction, we need to deduct the total cost of the inventory from the total sales revenue. First, we calculate the total sales revenue: 400 units sold at $40 each gives us $16,000. Next, we calculate the total cost of the inventory: 400 units purchased at $26 each costs Elenor $10,400.

Now, to find the gross profit, we subtract the total cost from the sales revenue: $16,000 - $10,400 = $5,600.

Therefore, Elenor's gross profit on this transaction is $5,600.

Learn more about Gross Profit Calculation here:

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You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 equal annual installments. The first payment is next year. How much is the prize really worth

Answers

The prize is really worth $1,006,512.21.

What is present value?

Present value is the sum of cash flows discounted at the rate of interest or the discount rate.  The annual cash flows for the next 10 years = $1.5 million / 10 = 150,000

The present value can be determined using a financial calculator

Cash flow from year 1 to 10 = $150,000

Discount rate = 8%

Present value = $1,006,512.21

Here is the complete question: You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 an¬nual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.

To learn more about present value, please check: brainly.com/question/25748668

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