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Darina [25.2K]
4 years ago
9

Suzy Bartles enters into an oral contract to purchase a tract of land from Bill Hermes. The land is considered worthless, but Ba

rtles feels that she has discovered a possible usage that would drastically increase the value of the land. To assure herself of the potential value of the land, Bartles orally hires an attorney to investigate the title and records associated with the land in question. Before gaining any information from her attorney, Bartles orally contracts with a builder to construct a huge building upon the site. Due to the size of the project, a completion time is difficult to predict. Bartles now discovers that the land is indeed useless, a fact she obtains through information from her attorney. Bartles now refuses to honor her contracts with Hermes, her attorney, and the builder. Must Bartles honor her contractual agreements?
Business
1 answer:
Wittaler [7]4 years ago
8 0
This is correct, thank u so much
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During 2018, its first year of operations, Pave Construction provides services on account of $152,000. By the end of 2018, cash
ASHA 777 [7]

The adjustment for noncollectable accounts on December 31, 2018:

Debit Bad Debts Expense $13,800

Credit Allowance for Doubtful Account $13,800

Explanation:

In Pave Construction, 2018 is the first year of operations. The company provides services on account of $152,000.

By the end of 2018, cash collections on these accounts total $106,000.

At the end of 2018, Accounts Receivable (the uncollected accounts) has debit balance of $46,000 ($152,000 - $106,000 = $46,000)

Pave estimates that 30% of the uncollected accounts will be bad debts

Bad Debts Expense = 30% x $46,000 = $13,800

The adjusting entry to record the bad debts expense will be:

Debit Bad Debts Expense $13,800

Credit Allowance for Doubtful Account $13,800

3 0
3 years ago
A double-entry accounting system is an accounting system: Multiple Choice That records each transaction twice. That records the
ddd [48]

Answer:

That records the effect of each transaction in at least two accounts with equal debits and credits.

Explanation:

A double-entry accounting system is the accounting system in which it shows the impact of each transaction in terms of debit and credit. In this the amount of credit should be equivalent to the amount of credit that means both the amount should be equivalent to each other

hence, the second option is correct and the same is to be considered

3 0
3 years ago
When the "full-cost approach" to marketing cost analysis is used, allocating fixed costs on the basis of sales:A. may make low-v
barxatty [35]

Answer:A. May make low volume customers appear more profitable than they are.

Explanation:

The allocation of fixed cost based on sales volume will increase cost allocated to large volume sales unit which will invariably reduce their profit and will reduce the cost allocated to low volume sales which may increase their profit.

It does not affect the overall firm profitability not customers contribution margin.

6 0
3 years ago
The following events occur for The Underwood Corporation during 2015 and 2016, its first two years of operations.
Montano1993 [528]

Answer:

Explanation:

12-June

Dr Accounts revenue $40,400

   Cr Service revenue $40,400

17- September

Dr Cash $24,500

    Cr Accounts receivable $24,500

31- December

Dr Bad debt expense $7,155 [(40,400-24,500)*45%]

    Cr Allowance for uncollectible accounts $7,155

4- March

Dr Accounts receivable $55,400

    Cr Service revenue $55,400

20- May

Dr Cash $10,000

   Cr Accounts receivable $10,000

2- July

Dr Allowance for uncollectible accounts $5900    

    Cr Accounts receivable [40400-24,500-10,000] $5,900  

     

19- Oct

Dr Cash    $44,500    

   Cr Accounts receivable   $44,500

 

31- Dec

Dr Bad debts expense   $3,650    

 Cr Allowance for uncollectible accounts[(55,400-44,500)*45%-1255] 3,650

3.

2015:

total accounts receivable  15,900    

allowance for uncollectible accounts 7,155    

net realizable value   8745 [15,900-7,155]

2016:

total accounts receivable  10,900

allowance for uncollectible accounts 4,905

net realizable value   5995 [10,900-4,905]

8 0
3 years ago
Write the Definition in your own words <br>Cash Basis of Accounting:
zmey [24]

Cash basis of accounting is the one that recognizes when cash has been paid and received unlike accrual basis.

<h3>What is cash basis of accounting?</h3>

Cash basis of accounting is the one that recognizes when revenue when received unlike accrual basis.

It is important to know that cash basis of accounting ensures the company always knows how much cash flow it has.

Learn more about cash basis of accounting here: brainly.com/question/20397933

#SPJ1

8 0
2 years ago
Read 2 more answers
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