At the end of 2017, Carpenter Co. has accounts receivable of $778,100 and an allowance for doubtful accounts of $63,200. On January 24, 2018, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $7,400.Prepare the journal entry to record the write-off.
Answers
Answer:
Dr. Allowance for Doubtful Accounts $7,400
Cr. Accounts Receivable $7,400
Explanation:
A write off eliminates the account receivable balance. It is recorded as the debit to Allowance for Doubtful Accounts because of its credit nature. It reduces the balance of the allowance use it for actual write off. On the other hand it credit the account receivable balance to reduce it as it is debit in nature.
Related Questions
Suppose that Tucker Industries has annual sales of $6.60 million, cost of goods sold of $2.94 million, average inventories of $1,205,000, and average accounts receivable of $660,000. Assuming that all of Tucker's sales are on credit, what will be the firm's operating cycle? (Round your answer to 2 decimal places.)
Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below: Materials Conversion Equivalent units in ending work in process inventory 2,200 940 Cost per equivalent unit $ 15.26 $ 6.13 A total of 20,200 units were completed and transferred to the next processing department during the period. Required: 1. Compute the cost of ending work in process inventory for materials, conversion, and in total. 2. Compute the cost of the units completed and transferred out for materials, conversion, and in total. (Round your final answers to the nearest whole dollar amount.)
How much would $1, growing at 3.5% per year, be worth after 75 years? a. $12.54b. $13.20c. $13.86d. $14.55e. $15.28
Suppose a nation has a labor force of 45.5 million workers and an unemployment rate of 6.15%. Instructions: Round your answers to two decimal places. a. How many workers in this nation are unemployed? million b. How many workers in this nation are employed? million
Answers
Answer: Indirect Lookup relationship
Explanation:
Indirect lookup relationship is used when there is no Salesforce ID in the external data. So this relationship basically links the external object which is the 'child' to the custom object which is the 'parent'.
As the question states, universal containers has included its orders as an 'external data object' into salesforce. Now it wants to create a link or relationship between accounts and orders objects. This is possible through indirect lookup relationship.
b. stereotype
c. halo bias
d. fundamental attribution error
Answers
Answer:
Option A: Prototype
Explanation:
culture is basically the way of life of people in a place. It is a system of beliefs, values, and ways of life that are shared or common with(by) a group of people.migration in the world today has made people with different cultures to be intertwined. Understanding your cultures is good but to foster growth, peace and love wherever we are among other cultures and traditions, one must learn to understand other people cultures around is as it will help in building faith, love and peace. Cultural differences appear in a number of important areas, including nonverbal signals, gender. Religion and attitudes toward work and success.
Focus on the original, early model,/sample(prototype), central tendencies and patterns within a culture will help us to recognize that there are a lot of difference in the beliefs, behavior and values within that culture.
Answers
Answer:
a. Gross pay for the week = $2,240
b. net pay for the week = $683
Explanation:
a) gross pay for the week = total amount earned, before the deduction of taxes and other charges, it is calculated as follows:
amount earned per hour = $32
amount earned in excess of 40 hours = 1.5 × 32 = $48 per hour
Total hour worked = 60 hours
This means that in the first 40 hours, the employee earned 32$ per hour and $48 per hour for the next 20 hours
∴ amount earned in the first 40 hours = 32 × 40 = $1,280
amount earned in the next 20 hours = 48 × 20 = $960
∴ Gross pay for the week = 1,280 + 960 = $2,240
b) net pay for the week = Gross pay - (Total deductions)
Deductions are as follows:
social security tax rate = 6.0% of gross pay = 0.06 × 2,240 = $134.4
Medicare tax rate = 1.5% of gross pay = 0.015 × 2,240 = $33.6
Federal income tax = $515
Total deductions = 134.4 + 33.6 + 515 = $683
∴ Net pay for the week = 2,240 - 683 = $1,557
Answers
Answer:
Process flexibility.
Explanation:
The ease with which resources can be adjusted in response to changes in demand, technology, products and services, and resource availability is known as process flexibility.
Process flexibility simply refers to the ability of a firm or company to respond to changes in the production line or manufacturing process of goods to meet the needs of their customers.
For instance, when there is a new technology in the industry, the ability of a company to switch with ease is its process flexibility.
Answers
Answer:
Number of years = 7.54 or 8 years
Explanation:
We know,
YTM =
Here,
I = Coupon payment
M = Par value
V = Market price
Given,
M = Par value = $1,000
V = Market price = $1,119.34
I = Coupon Payment = Par value × Coupon rate = $1,000 × 6.4% = $64
Since, it is a semi-annual payment = $64/2 = $32
YTM = 4.6%
Therefore, putting the value into the above formula, we can get
YTM =
or, 0.046 =
or, 0.046 =
or, 47.82988 = [Multiplying both the sides by 1,039.78]
or, 47.82988n = 32n - 119.34 [Multiplying both the sides by n]
or, 47.82988n - 32n = -119.34
or, -15.82988n = -119.34
or, n = (-119.34) ÷ (-15.82988)
Therefore, n = 7.54 years or almost 8 years.
Answers
Answer:
Recommendation : The firm should lease the data center
Explanation:
To determine which option is better, we would compare the upfront cost of option A to the present value of the lease payment.
The present value of the lease payment is given as follows:
PV = A× 1-1+r^(-n) /r
A- semi-annual lease payment - 3,500× 6 = 21,000
r- semi-annual interest rate = 5%/2 = 2.5%
n- number of period = 3× 2 = 6.(note that interest is compounded semi- annually i.e every six month)
PV of the lease payment = 21,000 × (1 - 1.025^(-6))/0.025 =115,670.63.
Comparing the two options, we have :
Purchase cost = 120,000
Lease cost = 115,670.63.
The lease cost is lower and would save the firm 4329.37 i.e (120,000 - 115,670.63)
Recommendation : The firm should lease the data center
Final answer:
When comparing the cost of purchasing a data center outright versus leasing it on a monthly basis over three years, it is slightly more cost effective, factoring in the present value of money, for the firm to lease the data center. The total present value cost of leasing is approximately $119,199.09, while purchasing would be $120,000.
Explanation:
The subject matter of this question involves determining the least expensive option for accessing a data center over a span of three years, given two possibilities: purchasing the center outright (Plan A), or leasing it on a monthly basis (Plan B). It's a form of capital budgeting, specifically a cost comparison method.
For Plan A, the upfront cost is $120,000. This cost is incurred immediately and there are no further costs associated with it for the three-year period.
Plan B needs to be evaluated using the time value of money because the monthly lease payments are made over time. Given the borrowing cost/APR of 5% and the semiannual compounding, it means the interest is compounded twice a year. The monthly cost of leasing the data center is $3,500. Over three years (36 months), this would amount to $3,500 x 36 = $126,000.
However, since we need to factor in the cost of borrowing, we need to calculate the present value (PV) of the lease payments. Because the interest is compounded semiannually, the effective monthly interest rate is (1+0.05/2)^(2/12)-1
= 0.00407412378303.
Using this to calculate the present value of an ordinary annuity formula:
P V = $3,500 x (1-(1+0.00407412378303)^-36)/0.00407412378303.
P V under Plan B is approximately $119,199.09.
Comparing the two plans, it's evident that Plan B (leasing) is the cheaper option by just under $1,000. Therefore, it would be more cost-effective for the firm to lease the data center rather than purchasing it outright.
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