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2 years ago

Prepare the adjusting entry to record bad debts under each separate assumption.

1 answer:

3 0

The preparation of the adjusting entries to record bad debts for Hawke Company under each separate assumption are as follows:

A) Bad Debts $169,790 Allowance for Doubtful Accounts $169,790

B) Bad Debts $189,173 Allowance for Doubtful Accounts $189,173

C) Bad Debts $102,935 Allowance for Doubtful Accounts $102,935

<h3>Data and Calculations:</h3>

A) Allowance for doubtful accounts = $142,320 ($3,558,000 x 4%)

Bad Debts Expense = $169,790 ($142,320 + $27,470)

B) Allowance for doubtful accounts = $161,703 ($3,558,000+ $1,832,100 x 3%)

Bad Debts Expense = $189,173 ($161,703 + $27,470)

C) Allowance for doubtful accounts = $75,465 ($1,078,074 x 7%)

Bad Debts Expense = $102,935 ($75,465 + $27,470)

<h3>Question Completion:</h3>

On December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales

$1,832 100 $3,558,000

In addition, its unadjusted trial balance includes the following items. Accounts receivable $1.078.074 debit

Allowance for doubtful accounts $27,470 debit.

Learn more about allowances for doubtful accounts at brainly.com/question/26498002

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The necessary adjusting journal entries for items a through h are:

Wells Technical Institute Adjusting journal entries

a) Dec 31

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b) Dec 31

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Cr Teaching Supplies $5,200

($8,000-$2,800)

c) Dec 31

Dr Depreciation Expense- Equipment $13,200

Cr Accumulated Depreciation- Equipment $13,200

d) Dec 31

Dr Depreciation Expense -Prof Library $7,200

Cr Accumulated Depreciation- Prof Library $7,200

e) Dec 31

Dr Unearned Revenue $5,000

Cr Training Revenue $5,000

($2,500×2 courses)

f) Dec 31

Dr Account Receiveble $7,500

Cr Tuition Revenue $7,500

g) Dec 31

Dr Salaries Expense $400

Cr Salaries Payable $400

($100×2 employees×2 days)

h) Dec 31

Dr Rent Expense $3,000

Cr Prepaid Rent $3,000

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3 years ago

During the process of operational planning, management must compare market demand with

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During the process of operational planning, management must compare market demand with Capacity.
Capacity refers to the company's ability to fulfill the amount of demand that exist for the products. If a company has a lot of orders without the ability to fulfill it, they will not be able to rake in the profit from the market.

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4 years ago

Compute net income for 2019 by comparing total equity amounts for these two years and using the following information: During 20

satela [25.4K]

Answer:

net income during 2019 = $109,045

Explanation:

total stockholder equity 2018 = assets - liabilities = $293,500 - $79,245 = $214,255

total stockholder equity 2019 = assets - liabilities = $497,512 - $177,212 = $320,300

change in equity from 2018 to 2019 = $106,045

$33,000 can be explained by additional capital invested, and the remaining $73,045 corresponds to change in retained earnings

change in retained earnings = net income - dividends distributed

$73,045 = net income - $36,000

net income = $109,045

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3 years ago

Megan is a salesperson for an industrial chemical manufacturer. While reviewing her new leads, Megan learned that two of the lea

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Answer:

B) they do not have a need for the products or services her company is offering

Explanation:

The reason why Megan will not consider the two prospects qualii leads is if they do not need her companie's products.

For these other options, they have the need but need further follow-up

a. They do not have the budget or financial resources to purchase the product.

c. They are too busy to meet with salespeople.

d. They do not have the authority to make a purchase decision.

e. They are not in her company's target market.

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3 years ago

Ives Corp. has an inventory period of 22.4 days, an accounts payable period of 36.5 days, and an accounts receivable period of 3

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Answer:

The Company's cash cycle is 17.3 days

Explanation:

The cash cycle is computed by the following formula:

Receivable No of days+ Inventory No of days- Payables No of days

31.4 days + 22.4 days - 36.5 days = 17.3 days

In the above question, Ives Corp is making an efficient operation of its cash resources. The payables are more than inventory, so the payables are financing the inventory as well as partly the receivables.

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3 years ago