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lesantik [10]
2 years ago
15

At the end of the current year, Accounts Receivable has a balance of $825,000; Allowance for Doubtful Accounts has a credit bala

nce of $7,500; and sales for the year total $3,710,000. Bad debt expense is estimated at 1/4 of 1% of sales.
A) Determine the amount of the adjusting entry for uncollectible accounts.
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

Accounts Receivable:
Allowance for Doubtful Accounts:
Bad Debt Expense:

c. Determine the net realizable value of accounts receivable.
Business
1 answer:
ehidna [41]2 years ago
6 0

A. The amount of the adjusting entry for uncollectible accounts is <u>$1,775</u>.

B. The adjusted balances of the Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense are:

Accounts Receivable: $4,535,000

Allowance for Doubtful Accounts: $9,275

Bad Debt Expense: $1,775

C. The net realizable value of the accounts receivable is <u>$4,525,725</u>.

<h3>What is the net realizable value of accounts receivable?</h3>

The net realizable value of accounts receivable is the estimated collections that can be recovered from credit customers.

It is the difference between the total credit sales and the allowance for doubtful accounts.

<h3>Data and Calculations:</h3>

Ending balances:

Accounts Receivable  $825,000 DR

Allowance for Doubtful Accounts $7,500 CR

Sales = $3,710,000

Estimated bad debt expense = 0.0025 (1/4 of 1%) of sales

= $9,275 ($3,710,000 x 0.0025)

A. The amount of the adjusting entry for uncollectible accounts is $1,775 ($9,275 - $7,500).

B. The adjusted balances of the Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense are:

Accounts Receivable: $4,535,000 ($825,000 + $3,710,000)

Allowance for Doubtful Accounts: $9,275

Bad Debt Expense: $1,775

C. The net realizable value of the accounts receivable is $4,525,725 ($4,535,000 - $9,275).

Learn more about the net realizable value of accounts receivable at brainly.com/question/22984282

#SPJ1

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a company recorded an event that had no affect on total assets, net income, or cash flow. this could have been caused by ______.
NemiM [27]

This action could have been caused by writing off an uncollectible account.

A write-off can be described as the removal of an accounts receivable that cannot be collected which was put in the general ledger.

If an account is uncollectible, then it means that the amount that would not be collected would be eliminated. It also means that a previous allowance balance is going to get reduced.

Read more on brainly.com/question/23306803?referrer=searchResults

3 0
3 years ago
When Patey Pontoons issued 6% bonds on January 1, 2018, with a face amount of $600,000, the market yield for bonds of similar ri
Sliva [168]

Answer:

<u>1.- issued at : </u>$579,378

<u></u>

<u>2.- the schedule is attached.</u>

<u></u>

<u>3 and 4.- journal entries</u>

cash                                     579,378 debit

discount on bonds payable 20,622 debit

         bonds payabe                        600,000 credit

--to record issuance-------

interest expense 20278.23 debit

        discount on bonds payable     2278.23 credit

        cash                                  18000 credit

--to record June 30th payment---

<u>5.-At December 31th 2018 will report as follow:</u>

bonds payable        600,000

discount on bonds    (15,986)

                           net 584,014

<u>6.- it will report interest expense for:</u>

20,278.23 June

20,357.97 December

total: 40.636,2‬

7.- maturity:

interest expense 20,898.55

discount on bonds payable 2,898.55

cash 618,000

Explanation:

For the value of the bonds at issuance, we will calcualtethe present value of the coupon payment and the maturity at market rate.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 18,000 ( 600,000 x 0.06/2)

time 8 (4 years x 2 payment per year

rate 0.035(market rate / 2)

18000 \times \frac{1-(1+0.035)^{-8} }{0.035} = PV\\

PV $123,731.1997

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   600,000.00

time   8.00

rate  0.035

\frac{600000}{(1 + 0.035)^{8} } = PV  

PV   455,646.93

PV c $123,731.1997

PV m  $455,646.9337

Total $579,378.1334

for the schedule we will multuply the carrying value by the market rate.

the ncompare with the proceed in cash to know the amortizaiton.

This amortization will increase the carrying value of the loan.

5 0
2 years ago
The following information is available for Bandera Manufacturing Company for the month ending January 31:
elena-14-01-66 [18.8K]

Answer:

Answer: Cost of goods sold, gross profit and net income

Explanation:

Bandera Manufacturing Company

Cost of Goods Sold

Jan-31  

Finished Goods Inventory, January 1 73590

Add: Cost of Goods Manufactured 306090

Total Goods Available for Sales 379680

Less: Finished Goods Inventory, January 31 67080

Cost of Goods Sold 312600

b)  

Bandera Manufacturing Company

Gross Profit

Jan-31

Sales 651250

Less: Cost of Goods Sold 312600

Gross Profit 338650

c)  

Bandera Manufacturing Company

Net Income

Jan-31

Gross Profit  338650

Operating Expenses:  

Selling expenses 102250  

Administrative expenses 54050  

Less: Total Operating Expense  156300

Net Income  182350

2)  

a)  

Digital Vibe Manufacturing Company

Income Statement

For the Month Ended January 31

Sales  232300

Less: Cost of goods sold  103400

Gross profit  128900

Less: Operating expense  

Selling expense 59400  

Administrative expense 26100  

Total operating expense  85500

Net income  43400

b)  

Particulars Amount ($)

Materials purchased 48300

Less: Materials used for production 37200

Ending balance of materials 11100

Particulars Amount ($)

Materials used for production 37200

Add: Direct labor wages 55500

Add: Factory overhead 78200

Total cost of manufacturing 170900

Less: Transferred to finished goods 129900

Ending balance of work-in-process 41000

Particulars Amount ($)

Transfer from work-in-process 129900

Less: Cost of goods sold 103400

Ending balance of finished goods 26500

4 0
3 years ago
This is for my business class someone help please and thank you!
daser333 [38]

Answer:

Legal and environmental.

Explanation:

PEST is a short form for political, economic, social, and technological factors. These are external factors likely to impact business performance. Entrepreneurs should analyze, understand them, and include their effects in business plans.

Other external factors that may affect business performance are legal and environmental.

For the legal factors, an entrepreneur should analyze the impact of possible changes in laws and legal interpretations on their businesses.  In the environmental analysis, the entrepreneur should be aware of the industry's environmental regulations and restrictions. They should plan for possible changes in license limitations.

7 0
2 years ago
owner withdrawals cause a(n) (increase/decrease) in owner's equity and are recorded directly in owner's (capital/withdrawal/equi
Alla [95]

Owner withdrawals cause a decrease in owner's equity and are recorded directly within the owner's withdrawal.

<h3>What is a withdrawal?</h3>

Withdrawals are variables in an economy that leak the circular flow of income and reduce the dimensions of national income. Withdrawals include savings, taxation, and imports.

To know more about withdrawal go to the given link:

brainly.com/question/2933232

#SPJ4

6 0
1 year ago
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