Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $154,500, allowance for doubtful accounts of $1,165 (credit) and sales of $1,175,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry?
Answers
Answer:
$4,710
Explanation:
The computation of bad debts expense adjusting entry is shown below:-
Bad debts expense adjusting entry = Sales + Uncollectible allowances - Balance in allowance for doubtful accounts
= ($1,175,000 × 0.5%) - $1,165
= $5,875 - $1,165
= $4,710
Therefore for computing the bad debts expense adjusting entry we simply applied the above formula.
The adjusting entry is shown below:-
Bad Debt A/c Dr, $4,710
To Allowance for Doubtful Debts $4,710
(Being bad debt account is recorded)
Related Questions
JFK Corp. factors $300,000 of accounts receivable with LBJ Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to LBJ Finance, which will receive the collections. LBJ Finance assesses a finance charge of 1.5% of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. a) Prepare the journal entry on July 1, 2020, for JFK Corp. to record the sale of receivable without recourse b) Prepare the journal entry on July 1, 2020, for LBJ Finance Corporation to record the purchase of receivables without recourse.
Which mathematical sentence most accurately expresses the information inthe problem below? Crystal has 121 compact discs that she wants to put into boxes. Each of the boxes that she brought home holds 25 discs. How many of these boxes will she need for all of her discs?
It is estimated that a certain piece of equipment can save $ per year in labor and materials costs. The equipment has an expected life of years and no market value. If the company must earn a % annual return on such investments, how much could be justified now for the purchase of this piece of equipment?
Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie’s product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow: Factory rent $ 3,130 Company advertising 1,060 Wages paid to assembly workers 30,500 Depreciation for salespersons’ vehicles 2,200 Screws 535 Utilities for factory 845 Assembly supervisor’s salary 3,580 Sandpaper 185 President’s salary 5,180 Plastic tubing 4,050 Paint 285 Sales commissions 1,350 Factory insurance 1,170 Depreciation on cutting machines 2,000 Wages paid to painters 7,550 Assume that Suzie Whitson has decided to begin production of her outdoor children’s toy. Required: 1 and 2. Identify each of the preceding costs as either a product or a period cost. If the cost is a product cost, decide whether it is for direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and also identify each of the preceding costs as variable or fixed cost
1. Calculate the variable rate per machine hour and the total fixed utility cost.
2. Show the equation for determining total utility cost for the machine shop.
3. If Matt anticipates using 1, 200 machine hours in January, predict the shop's total utility bill using the equation from Requirement 2.
Answers
Answer:
Instructions are below.
Explanation:
Giving the following information:
Highest cost= $2,400 when the machines worked 1,000 machine hours.
Lowest cost= $2,200 when the machines worked 500 machine hours.
To calculate the variable cost per unit and total fixed costs, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (2,400 - 2,200) / (1,000 - 500)
Variable cost per unit= $0.4 per hour
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 2,400 - (0.4*1,000)= $2,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,200 - (0.4*500)= $2,000
Total cost= 2,000 + 0.4x
x= machine hour
Finally, the total cost for 1,200 machine hours:
Total cost= 2,000 + 0.4*1,200
Total cost= $2,480
c. Paid $513 in principal and $91 in interest expense on long-term debt.
d. Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account.
e. Incurred $10,766 in shipping expenses, all on credit. F. Paid $28,241 cash on accounts owed to suppliers. G. Incurred $4,332 in marketing expenses; paid cash. H. Collected $620 in cash from customers paying on account. I. Borrowed $6,359 in cash as long-term debt. J. Used inventory costing $62,752 when sold to customers. K. Paid $177 in income tax recorded as an expense in the prior year.
Answers
Final answer:
The subject of this question is Business at a College level. It provides various transactions and asks for clarification. The step-by-step breakdown of each transaction helps understand the scenario and the financial implications.
Explanation:
The subject of this question is Business and it is at a College level. The question provides various transactions and asks for clarification on the subject matter. Below is a step-by-step breakdown of each transaction:
- Issued stock for $6 cash: This transaction indicates that $6 cash was received in exchange for issuing stock.
- Purchased equipment costing $6,320: This transaction involves the cash payment of $4,893 and the remaining balance of $1,427 charged on account.
- Paid principal and interest expense on long-term debt: In this transaction, $513 is paid towards the principal amount and $91 is paid as interest expense. The debt is not specified.
- Earned sales revenue and collected cash: $88,988 is earned in sales revenue, of which $87,949 is collected in cash. The remaining amount is owed by the customers on account.
- Incurred shipping expenses: $10,766 in shipping expenses is incurred and charged on credit.
- Paid accounts owed to suppliers: $28,241 cash is paid towards accounts owed to suppliers.
- Incurred marketing expenses: $4,332 in marketing expenses is incurred and paid in cash.
- Collected cash from customers paying on account: $620 cash is collected from customers who are paying on account.
- Borrowed cash as long-term debt: $6,359 is borrowed in cash as long-term debt.
- Used inventory costing $62,752: Inventory costing $62,752 is used when sold to customers. The information does not mention the selling price or any profit.
- Paid income tax: $177 is paid as income tax recorded as an expense from the prior year.
Learn more about Business transactions here:
#SPJ6
Final answer:
The question involves interpreting 'business transactions' and their effect on the components of the accounting equation (Assets = Liabilities + Equity). Various business transactions mentioned include issuing stock, purchasing equipment, earning and collecting sales revenue, borrowing and paying long-term debt, and more.
Explanation:
The subject of this question encompasses various business transactions that ultimately affect an entity's financial statements. The transactions in this question fall into categories of equity transactions (issuing stock), asset acquisitions (purchasing equipment), liabilities and equity transactions (borrowing and paying long-term debt), revenue and receivable transactions (earning and collecting sales revenue), expense and payable transactions (incurred shipping and marketing expenses), inventory transactions (using inventory sold to customers) and tax transactions (paying income tax recorded as an expense in the previous year).
Each of these transactions will have a dual effect on the components of the accounting equation (Assets = Liabilities + Equity).
For instance, when the company issued stocks for $6 cash, it increased its cash asset and its equity. When the company purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account, it increased its equipment asset, decreased its cash asset and increased its Accounts Payable liability.
Learn more about Business Transactions here:
#SPJ6
Answers
Answer:
Explanation:
Corporate level tax on $200,000 is $61,250
Cash(After Corporate tax)=
Individual tax on $138,750(15%)=
Hence, net after tax cashflow :
Answers
Answer:
The correct answer is A) worldwide.
Explanation:
The concept of a global approach to tax collection is the determination of the tax burden without considering the origin of the profits reported in the tax declaration, which implies the homogenization of the tax burden that becomes effective taking into account double treaties. taxation, where information is received from other countries on the behavior of foreign branches in this regard.
Answers
Answer:
Yes, Kevin has an enforceable security interest
Explanation:
Judging from the perception of simple contract, which is a legally binding contract on parties that have entered into it,for the contract to be legally enforceable the following conditions must be met.
There must be an agreement between parties involved,this is demonstrated by Kevin offering to loan Francine $1500, which was met the latter's acceptance.
Consideration is when both parties promises to give something of value in exchange for value received, which is also satisfied in this case,as Francine promises to return $1500 in exchange for same amount borrowed and by extension Kevin has right to repossess the cart.
Lastly, both parties intended to create legally enforceable relations as well the fact that they are both capable (of age) and the transaction entered is legal in law parlance.
In conclusion, the above points show that Kevin has an enforceable security interest.
Answers
Answer:
correct option is d.$7,511.61 unfavorable
Explanation:
given data
standard material cost = $1.97 per yard
Actual material cost = $2.05 per yard
Standard yards = 4.67 per unit
Actual yards = 5.08 per unit
Units of production = 9300
solution
we get here Direct material quantity variance that is express as
Direct material quantity variance = (Standard quantity - actual quantity) × Standard rate .....................1
put here value and we will get
Direct material quantity variance = (9300 × 4.67 - 9300 × 5.08) × 1.97
Direct material quantity variance = −7511.61
so correct option is d.$7,511.61 unfavorable