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2 years ago

A situation that requires an adjusting entry that is not a prepayment or an accrual entry is:_________

1 answer:

3 0

Estimating bad debts is a circumstance that necessitates an adjusting entry that is neither a prepayment nor an accrual entry.

Bad debt: What is it?

Sometimes a firm needs to figure out what percentage of its receivables is recoverable when it comes time to prepare its financial statements at the end of the fiscal period. The two techniques of documenting bad debt are 1) direct write-off method and 2) allowance method, and they both involve recording the percentage that a company considers is uncollectible.

The significance of bad debt costs

Companies create financial statements at the beginning of each fiscal year or quarter. Investors and potential investors look at the financial accounts, thus they need to be trustworthy and honest.

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Give two characteristics of a perfectly competitive market.

sergey [27]

1. a large number of buyers and sellers
2. an identical or a homogeneous product

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4 years ago

An investment will pay $20,000 at the end of the first year, $30,000 at the end of the second year, and $50,000 at the end of th

kondaur [170]

Answer:

$80541.

Explanation:

Please find the detailed answer as follows:

The Present value is the present value of a future amount of money or stream of cash flows of a specified rate of return . Please refer to the present value formula .

Present Value = 20000/ (1+.10) ^1 + 30000/ (1+.10) ^2 + 50000/ (1+.10) ^3 = $80540.95 or $80541 .Therefore the correct answer is $80540.95 or $80541.

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3 years ago

"At Artistic Floral Creations, the non-managerial employees all receive the same pay increase every year. Usually this increase

vladimir1956 [14]

Answer:

Artistic Floral Creations has a entitlement philosophy of compensation.

Explanation:

A compensation philosophy is simply refers to a formal statement which documents a company's position about the compensation of its employees.

It is an explanation of the reason for employee payment and it creates a framework for consistency. Employers use their compensation philosophy to attract, retain and motivate employees

Entitlement philosophy of compensation therefore assumes that the employees who have worked for another year in a company are entitled to pay increases, regardless of their performance differences. This action is often geared towards a higher job performance, and job satisfaction.

5 0

4 years ago

Read 2 more answers

After the amount due on a sale of $30,400, terms 2/10, n/eom, is received from a customer within the discount period, the seller

Elenna [48]

Answer:

a. The amount refund owed to the customer is : $29,792

b. To record the refund and the return of merchandise:

Dr Sales returned and Allowances $30,400

Cr Sales Discounts $608

Cr Cash $29,792

(to record the refund of $30,400 sales with sales discount of $608 made)

Dr Merchandise Inventory $13,060

Cr Cost of Merchandise sold $13,060

(to record the impact of the $30,400 sales refund on cost of merchandise sold and merchandise inventory)

Explanation:

- Further explanation for sell discounts calculation:

As the terms is 2/10, total discount had been given as calculated below:

$30,400 x 2% = $608.

3 0

4 years ago

Melody and Todd are married and have employee wages of $250,000 each in 2019. They have no other income. How much additional 0.9

sasho [114]

Answer:

$1,350

Explanation:

The computation of the amount pay or received as a refund at the time of filing the income tax return for the year 2019 is shown below:

As we know that

The Medicare tax rate is 1.45% till $200,000

And, if it is above $200,000 than 2.35% is charged (1.45% + 0.9%)

Now

For individually calculated,

Melody = ($200,000 × 1.45%) + ($50,000 × 2.35%) = $4,075

Todd = ($200,000 × 1.45%) + ($50,000 × 2.35%) = $4,075

So, the total is

= $4,075 + $4,075

= $8,150

Now if they filling their joint return so

Total salary is $500,000 ($250,000 × 2)

Medicare upto $250,000 = $3,625 ($250,000 × 1.45%)

for remaining $250,000 = $5,875 ($250,000 × 2.35%)

So, the Total is

= $3,625 + $5,875

= $9,500

Now the refund is

= Joint return - individually return for each one

= $9,500 - $8,150

= $1,350

4 0

3 years ago