Answer:
The dollar amount that should be credited to Allowance for Uncollectible Accounts at year end is $ 12,100
Explanation:
Providing allowance for doubtful debts
A provision is made for the debts which are likely to be uncollectable by a company.This amount is used to adjast the Trade Receivable balances to show a faithful representation of assets a beusiness has at end of year.
Calculations
<em>December 31, 2018 Arundel Company`s Allowance for Doubtful debts is calculated as follows</em>
Credit Sales × % of allowed provision
$805,000 × 2.0%
$16,100
<em>Adjastment to be done in Allowance for Doubtful Debts Account:</em>
<em>Hint : Open Allowance for Doubtful Debts T Account:</em>
<u>Credits :</u>
Opening Balances 4,000
Balancing Figure (Profit and Loss) 12,100
Totals 16,100
<u>Debit:</u>
Closing Balance 16,100
Totals 16,100
Answer:
b. A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800
Explanation:
Parker Company uses the perpetual inventory system. It bought merchandise on account from Beige Inc, invoice no. 342, $20,000; terms 1/15, n/30; dated June 25; FOB San Francisco, freight prepaid and added to the invoice, $1,800 (total $21,800).
The following journal entries records this purchase transaction: A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800
<u>The reason is that with a perpetual inventory system, transportation costs are added directly to the inventory balance</u>
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Answer:
Money
Explanation:
Money is anything that is generally acceptable as a medium of exchange, for payment of bills, for settlement of debt and for storing values as well. Major characteristics of money are durability, homogeneity, portability, denomination, recognizability etc
Answer and Explanation:
In the absence of sufficient information about the expenses and other factors, which related to money, we have to consider market price as the value of shrimp.
The value of Shrimp is $10,700 per ton because, In this scenario, we have only market rate to consider the value of shrimp.
Therefore $10,700 is the price of 1-ton shrimp.