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2 years ago

Prepare journal entries for the following transaction listed.

1 answer:

3 0

During the period, bad debts are written off in the amount of $14,500. Journal entry of the given transaction will be as follows.

Bad debt account will be debited and debtors account will be credited by $14500.

One of the most typical types of bad debt is credit card debt. Lenders issue credit cards, which let you make purchases on credit. These credit cards frequently have exorbitant interest rates that can soon become out of control.

Bad debt costs are typically listed on the income statement as a sales and general administrative expenditure. Accounts receivable on the balance sheet are reduced when bad debts are recognized, but firms still have the right to collect money if the situation changes.

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jaspen purchased a factory building on november 15, 2002, for $5,000,000. jaspen sells the factory building on february 2, 2022.

Rashid [163]

Option D is the correct choice.

jaspen purchased a factory building on November 15, 2002, for $5,000,000. jaspen sells the factory building on February 2, 2022. the cost recovery deduction for the year of the sale would be $19,844.

The capacity of an organization to recover (deduct) the costs of its investments is known as cost recovery. It can have an impact on investment choices and is crucial in determining a company's tax base. The process of recovering the cost of any expense is known as cost recovery, often known as the cost recovery method. The cost recovery approach accounts for the fact that recovering costs don't always occur immediately or even within the same year when it comes to closing the books.

Jaspen bought the structure on November 15, 2002, and on February 2, 2022, it sold the factory facility.

The structure cost $5,000,000.

Cost recovery deduction for the year of sale

= [(0.3175 * 5,000,000 * 1.5) / 12]

= 2,381,25 / 12

Therefore, the Cost recovery deduction for the year of sale = $19,844 (OPTION D)

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COMPLETE QUESTION:

Jaspen purchased a factory building on November 15, 2002, for $5,000,000. Jaspen sells the factory building on February 2, 2022. The cost recovery deduction for the year of the sale would be:

a.$158,750.

b.$26,458.

c.$16,025.

d.$19,844.

e.$0.

5 0

1 year ago

Marigold Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gea

Luba_88 [7]

Answer:

Break-even point (dollars)= $15,500,000

Explanation:

Giving the following information:

The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Marigold incurs $5735000 in fixed costs.

The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= Total fixed costs / Weighted average contribution margin ratio

Break-even point (dollars)= 5,735,000 / (0.3*0.65 + 0.5*0.35)

Break-even point (dollars)= $15,500,000

7 0

4 years ago

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows.

Blababa [14]

Answer:

I used an excel spreadsheet since there is not enough room here.

Download pdf

8 0

4 years ago

The members of a cross-functional team have an informal agreement that whenever a team member goes out of town on business, that

Studentka2010 [4]

The type of arrangement where the members of a cross-functional team have an informal agreement that whenever a team member goes out of town on business, that the team member will leave a phone number where he can be reached by the other members of the team is known as group norm.

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4 years ago

You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted you an APR of 5.2 percent fo

just olya [345]

Answer:

Ans. Your monthly payments will be $1,602.37 ; The effective annual rate is 5.33%

Explanation:

Hi, first, we need to convert this APR rate into an effective monthly rate, that is, dividing 0.052/12 =0.00433 (or 0.4333%). Then we need to use the following equation and solve for A.

$PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }$