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prisoha [69]
3 years ago
6

Marigold Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $12

0000 and credit sales are $1210000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Marigold Corp. make if the Allowance for Doubtful Accounts has a credit balance of $1200 before adjustment?
Business
1 answer:
olga nikolaevna [1]3 years ago
4 0

Answer:

The journal entry for the following is shown below:

Explanation:

The journal entry for the following is as follows:

Bad Debts Expense A/c................................Dr  $3,600

       Allowance for Doubtful Accounts A/c......Cr  $3,600

Being the adjusting entry for bad debt expense

Working Note:

Using the percentage of accounts receivable computing the amount of bad debt expense as:

Allowance for doubtful accounts = Accounts receivable × %

= $120,000 × 4%

= $4,800

Now, computing the bade debt expense as:

Bad debt expense = Allowance for doubtful debts - Credit balance

= $4,800 - $1200

= $3,600

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You are purchasing an equipment for $ 200,000 for your new store. Assume the store has no other expenses or revenues other than
djverab [1.8K]

Answer:

Negative cash balance of $210,000.

Explanation:

Given that,

cost of equipment = $200,000

Inventory purchased = $12,500

Cash balance = $2,000

Accounts payable = $4,500

Net cash flow at time zero:

= (cost of equipment) + (Increase in working capital)

= ($200,000) + (Inventory purchased + cash balance - Accounts payable)

= ($200,000) + ($12,500 + $2,000 - $4,500)

= ($200,000) + ($10,000)

= ($210,000)

Note: Negative values are in the parenthesis.  

4 0
3 years ago
You win a lottery that pays $10,000 each year for the next 5 years beginning next year. How much are your winnings worth today
Anit [1.1K]

Answer:

$43,294.77

Explanation:

Here is the full question used in answering this quetion :

You win a lottery that pays $10,000 each year for the next 5 years beginning next year. How much are your winnings worth today if the market interest rate is 5%?

Present value is the sum of discounted cash flows

PV can be calculated with a financial calculator

Cash flow in year 1 - 5 = $10,000

i = 5%

PV = $43,294.77

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
3 years ago
The total overhead variance is the difference between actual overhead costs and budgeted overhead costs. True False
disa [49]

The difference between the realized overheads and the estimated overheads is the total overhead cost.

<h3>What are total overhead costs?</h3>

Total overhead costs are identified as the costs related to administration, sales, marketing, and production. Before the total overhead costs are realized, a budget regarding estimated costs is prepared.

The calculation of the total overhead costs is actual overhead costs less the budgeted overhead costs.

Hence, the aforementioned statement regarding total overhead costs holds true.

Learn more about total overhead costs here:

brainly.com/question/13018280

#SPJ1

6 0
2 years ago
Cost of goods sold is computed from the following equation:
trasher [3.6K]

Answer:

B. beginning inventory cost of goods purchased – ending inventory

Explanation:

Cost of goods sold = Opening Inventory + Cost of goods purchased - Closing inventory

This is because Opening + Purchases = Total maximum level of inventory held during the year, out of which some will be sold and some will be kept as part of closing inventory.

Thus Total Opening + Purchases - Closing Inventory = Cost of goods sold

Therefore correct option is, here it is clear that beginning inventory + cost of goods purchased is written, as in option A with same factors there is negative sign in front of cost of goods purchased.

B. beginning inventory cost of goods purchased – ending inventory

5 0
3 years ago
Why do basketball players switch teams?<br> Why do they have to sign a paper when they do that?
Anika [276]

It varies from player to player, some do it for better pay and some do it because they don't like the team their with. They have to sign papers because there transferring their services to another franchise, and are agreeing to new terms of contracts. Things that are disclosed in the contracts are things such as payment and how many years they will be bonded by the contract.

6 0
3 years ago
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