BUSINESS COLLEGE

Determining Financial Statement Effects of Write-Offs and Bad Debt Expense Using the Allowance MethodUsing the following categories, indicate the effects of the following transactions. Indicate the accounts affected and the amounts. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.)

During the period, customer balances are written off in the amount of $10,000.
At the end of the period, bad debt expense is estimated to be $8,000.

Answers

Answer 1

Answer:

Answer: Please see the analysis below

Explanation: The following are the financial statement effects

Assets Liabilities Stockholders Equity Income Expense

Write-off of $10,000 - - Nil Nil Nil

Bad debt of $8,000 - + - - +

Write-off of customer balances of $10,000 would lead to reduction in assets and also reduction in liabilities (since the provision for doubtful accounts reports to liabilities but mapped to the accounts receivable to show the net amount). Here, we have assumed that there is an existing allowance for doubtful accounts that has $10,000 buffer or more. If the write-off was not initially provided for, it would hit expense by debiting bad debt expense and crediting the accounts receivable. Its effects are therefore decrease in asset, decrease in liabilities.

Bad debt expense of $8,000 affects the expense and the liabilities/assets. Journal entries to record the bad debt expense is Debit Bad debt expense $8,000; Credit Allowance for doubtful accounts $8,000. So, it affects the expense, liabilities and ultimately the assets (allowance for doubtful accounts is a contra to the accounts receivable). Its effects are increase in expense, increase in liabilities, decrease in stockholders equity, decrease in income and decrease in assets

Answer 2

Answer:

Answer:

Assets =Liabilities + Stockholders Equity

-8000= - 8000

Explanation:

Allowance for Doubtful Debts $10,000

Bad debt expense $8,000

Assets =Liabilities + Stockholders Equity

-8000= - 8000

The write off does not affect the realizable value of accounts receivable. Neither total assets nor net income is affected by the write off a specific account.Instead both assets and net income are affected in the period when bad debts expense is predicted and recorded with an adjusting entry.

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Which of the following generally provides the least evidence regarding the valuation of accounts receivable?A. Reviewing an aging of accounts receivable.B. Examination of cash receipts subsequent to the balance sheet date.C. Confirming current (0-30 day) year-end accounts receivable.D. Reviewing credit files for selected account.
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The types of decision making a consumer uses for a product does not necessarily remain constant. Why ?

Answers

Answer:

The decision making of a consumer goods does not change because the amount of a good consumer wants at a particular point in time is determined by some factors

Explanation:

The decision of a consumer does not remain constant, this is because, the quantity of a good consumer demand at a particular point in time is determined by several factor

Now, in the place where i am working in an MNC as a contract role. While my working period my consumption of goods increased as i was earning my own money and i did not have think more than once before purchasing any particular kind of goods

Now after that time ends, i have to collect money from my parents and now my thoughts and behavior towards consuming changed greatly.

Answer:

Well in most of the cases the decision making power and quality of the consumer remains constant but again, there are some cases where the the consumer changes the type of his/her decision making and go for another product.

One of the main reasons for this to happen is that, the consumer has or had a negative experience with the same product he.she has been using for a long time, this does not happen very often but when ever it does the consumer switches itself to other alternatives of that product.

Apart from that, there is a possibility that the product that the consumer really wants is sold out and now the consumer has to go with the alternative in order to satisfy his/her needs.

Hope this Helps.

Good luck.

Sheridan Company's prepaid insurance was $192000 at December 31, 2021 and $89600 at December 31, 2020. Insurance expense was $62000 for 2021 and $53300 for 2020. What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis

Answers

Answer:

$164,400

Explanation:

Calculation to determine What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis

Using this formula

Cash disbursements for insurance =2021 prepaid insurance +Insurance expense-BOY prepaid insurance

Let plug in the formula

Cash disbursements for insurance=$192,000+ $62,000-$89,600

Cash disbursements for insurance=$164,400

Therefore the amount of cash disbursements for insurance that would be reported in Sheridan's 2021 cash provided by operating activities presented on a direct basis is $164,400

Drag the account types to form the expanded accounting equation. Begin the equity section with Contributed Capital + Retained Earnings. Then, identify whether the item increases, '+', or decreases, '-', equity. Common Accounts Receivable Cash Dividends Revenues Expenses Assets Stock Unearned Revenues Accounts Liabilities Payable 2 Enter the missing value to balance the equation. E25,000 38,000 38,000 35,000. 28,000 22,000 30,000-48,000 +31,000 2,000 - 39,000 32.000 25,000 31.000 39,000 3 Identify the part of the expanded accounting equation for each account title. Prepaid Insurance Common Stock Dividends Insurance Expense Accounts Payable Service Revenue 4 Build a T-account for each account title. Label the DR (debit), CR (credit), NB (normal balance), and "+" or "-". Credit Debit Normal Balance Accounts Receivable Dividends Common Stock + + + + Insurance Expense Rent Payable Interest Revenue + + + + + + Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions. Liabilities Assets Beginning of Year: $27,000 $15,000 End of Year: $60.000 $27,000 1) What is the equity at the beginning of the year? 2) What is the equity at the end of the year? Ending Equity Beginning Equity 3) If the company issues common stock of $6,300 and pay dividends of $37,300, how much is net income (loss)? 4) If net income is $1,100 and dividends are $6,000, how much is common stock? Net Income (Loss) Common Stock 5) If the company issues common stock of $19,600 and net income is $19,100, how much is dividends? 6) If the company issues common stock of $42,900 and pay dividends of $3,400, how much is net income (loss)? Dividends Net Income (Loss)

Answers

The answers for the subdivisions are given below and are explained. Explanation:

it consists of a table refer the attachment

it has the list of asserts, liabilities and common stock

(i) 32000

(ii) 11000

(iii) 38000

The table in attached, it explains the prepaid expenses , common stock , dividends , insurance expenses , Insurance expenses, Accounts payable, service revenue.

Refer the tables are attached it explains the Accounts receivable, common stock, rent payable. insurance expense , interest revenue and dividends.

1.Equity at the beginning of the year = 27000 - 15000 = 8000

2. Equity at the end of the year 60,000 - 27,000 = 33000

3. Increase in equity = 33000 - 8000 = 25000

Net Income = 25000 + 37300 - 6300 = 56000

4. Common stock = 25000 + 6000 - 1100 = 29900

5. Dividends = 19600 + 19100 - 25000 = 13700

6. Net Income = 25000 + 42900 - 3400 = 64500

A company that is based on a direct flow of authority from the top executive to subordinates is known as a ________ organization.

Answers

A company that is based on a direct flow of authority from the top executive to subordinates is known as a Line of Organization. In this type of organization, the decision and authority are structured from the highest position down directly to its subordinates.

Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produced 10,064 11,918 8,277 Each chair produced uses 5 board feet of wood. Management wants ending inventory levels of raw materials to equal 20% of the production needs (in wood) for the next month. How many board feet of wood does Tucker need to purchase in February? Round your answer to the nearest whole number. Don't round any intermediate calculations.

Answers

Answer:

79,785

Explanation:

The computation of the purchase needed is shown below:

= February material + march material - January material

where,

February material = 11,918 units × 5 board feet = 59,590

March material = 8,277 × 5 board feet × 20% = 8,277

January material = 11,918 units × 5 board feet × 20% = 11,918

Now put these units to the above formula

So, the total units would equal to

= 59,590 + 8,277 + 11,918

= 79,785

Final answer:

Tucker Company needs to purchase approximately 55,949 board feet of wood in February to meet its production needs and desired inventory levels, when rounded to the nearest whole number.

Explanation:

To solve this problem, we need to first calculate the number of board feet of wood required for production in each month, and then consider the ending inventory levels desired by management.

Let's first calculate the amount of wood required for production each month. For each chair, Tucker requires 5 board feet of wood. Thus, for January, February, and March, they respectively require 10,064*5, 11,918*5 and 8,277*5 board feet, which equals 50,320, 59,590 and 41,385 board feet.
Next, we need to calculate the ending inventory of raw materials for February. Management wants this to be 20% of the production needs for March, or 0.20*41,385 = 8,277 board feet.
Now, to find the Raw Material to Purchase in February, you need to add the production needs for February and the desired ending inventory for February, then subtract the beginning inventory for February. The beginning inventory would be the ending inventory of January. As the ending inventory of January equals to 20% of February's needs, we have 0.20*59,590 = 11,918 board feet(same as the units produced in February).
Thus, the board foot of wood Tucker needs to purchase in February is: 59,590 (needs for February) + 8,277 (ending inventory for February) - 11,918 (beginning inventory for February) = 55,949 board feet.

So in answer to the question, Tucker needs to purchase approximately 55,949 board feet of wood in February (to the nearest whole number).

Learn more about Inventory Management here:

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Your team consists of 12 members, each in different locations, who are collaborating on a detailed committee report. Your team is in the final phase of the writing process and is making final edits to the report. Because you are each responsible for different aspects of the finalization process, the entire team needs to track changes so that the edits are visible before they are finalized.Which collaboration tools would be best for this situation? Check all that apply.A. Google DocsB. WikiC. E-mail

Answers

Answer: A. Google Docs

Explanation:

Google Docs will be the best solution in this case because it is a cloud computing tool that enables people to work on a document simultaneously across the world. As others are working on the documents, the saves that they make are instantly saved on the document and reflected across all users who have access to the document at the time.

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