Who wants to talk to me? (NO POLITICS) PLZ :(

Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving s

vesna_86 [32]

Answer:

2016

a. Dr Account receivable $1,353,000

Cr Sales revenue $1,353,000

Dr Cost of goods sold $979,100

Cr Inventory $979,100

b Dr Allowance for doubtful accounts $20,900

Cr Account receivable $20,900

c Dr Cash $669,200

Cr Account receivable $669,200

d Dr Bad debt expense $33,495

Cr Allowance for doubtful accounts $33,495

2017

e Dr Account receivable $1,544,700

Cr Sales revenue $1,544,700

Dr Cost of goods sold $1,318,300

Cr Inventory $1,318,300

f Dr Allowance for doubtful accounts $27,000

Cr Account receivable $27,000

Dr Cash $1,194,200

Cr Account receivable $1,194,200

h Dr Bad debt expense $33,147

Cr Allowance for doubtful accounts $33,147

Explanation:

Preparation of the journal entries to record Liang's 2016 and 2017 summarized transactions and its year-end adjustments to record bad debts expense

2016

a. Dr Account receivable $1,353,000

Cr Sales revenue $1,353,000

Dr Cost of goods sold $979,100

Cr Inventory $979,100

b Dr Allowance for doubtful accounts $20,900

Cr Account receivable $20,900

c Dr Cash $669,200

Cr Account receivable $669,200

d Dr Bad debt expense $33,495

Cr Allowance for doubtful accounts $33,495

($1,353,000-$669,200-$20,900=$662,900)

($662,900*1.90%+$20,900)

($12,595+$20,900=$33,495)

2017

e Dr Account receivable $1,544,700

Cr Sales revenue $1,544,700

Dr Cost of goods sold $1,318,300

Cr Inventory $1,318,300

f Dr Allowance for doubtful accounts $27,000

Cr Account receivable $27,000

Dr Cash $1,194,200

Cr Account receivable $1,194,200

h Dr Bad debt expense $33,147

Cr Allowance for doubtful accounts $33,147

($1,544,700+$662,900-$1,194,200-$27,000=$986,400)

($986,400*1.90%=$18,742)

($18,742+$27,000-$12,595=$33,147)

5 0

3 years ago

A University of Iowa basketball standout is offered a choice of contracts by the New York Liberty.

Ratling [72]

Answer: The lowest interest rate at which the present value of the second contract exceeds that of the first is a. 7 percent.

Explanation:

Calculating present values is a useful way to compare cases where money is to be received in the future. The higher the present value (when comparing cases where you get money), the better. To calculate it, we make use of the next formula:

$PV=\frac{C}{(1+r)^{n}}$

Where PV: Present value,

C: Cash flow at a given period,

r: Interest rate, and

n: Number of periods that will have passed (in this case, we are talking about years).

Now, since we are getting money twice in each case (the first payment one year from today, and the final payment two years from today), we can restructure our present value formula to include these two payments. We will get something like this:

$PV=\frac{C_1}{1+r}+\frac{C_2}{(1+r)^{2}}$

Notice how each fraction represents one of the payments received, with one having an 'n' of 1 year, and the other one having an 'n' of 2 years. C₁ and C₂ represent the first and the second payment, respectively.

Now that we have our completed formula, let's review each contract's present value (PV) with the lowest interest rate (7%), just to see how it turns out. Remember that 7% equals 0.07 in any formula:

Contract A) This one gives her $100,000 one year from today and $100,000 two years from today.

$PV_{A,0.07}=\frac{100000}{1+0.07}+\frac{100000}{(1+0.07)^{2}}\\PV_{A,0.07}=93457.944+87343.873\\PV_{A,0.07}=180801.817dollars$

So Contract A's present value at 7% interest rate would be equal to $180801.817.

Contract B) The second one gives her $132,000 one year from today and $66,000 two years from today.

$PV_{B,0.07}=\frac{132000}{1+0.07}+\frac{66000}{(1+0.07)^{2}}\\PV_{B,0.07}=123364.486+57646.956\\PV_{B,0.07}=181011.442dollars$

So Contract B's present value at 7% interest rate would be equal to $181011.442, which exceeds that of Contract A.

Since among our options of interest rates, 7 percent is the lowest one, and, with this taken into account, the present value of the second contract (Contract B) exceeded that of the first (Contract A), the answer is a. 7 percent.

8 0

3 years ago

Scenario 13-20 suppose that a given firm experiences decreasing marginal product of labor with the addition of each worker regar

Viktor [21]

Answer:

U-shaped

Explanation:

Since the marginal product of labor is decreasing, the average variable costs and marginal costs will be increasing at all points, but the average fixed costs will be decreasing. That is why the average total costs (which includes both variable and fixed costs per unit) will be U-shaped since they will fall at the beginning when the decrease in marginal product of labor is small, bu then will increase as the marginal product of labor falls even more.

7 0

3 years ago

Tonya put $250 into an account three years ago. the first year he earned 6 percent interest, the second year 7 percent, and the

Elina [12.6K]

$287.64

Calculate the interest for each year, then add it to the principal for the next year.

Year 1: 250 * .06 = 15

New balance 250+15 = 265

Year 2: 265 * .07 = 18.55

New Balance 265+ 18.55 = 283.55

Year 3: 283.55 * .08 = 22.68

New Balance 265+ 22.68 =287.64

8 0

3 years ago

All of the following are reasons why configuration management is an important risk management process, EXCEPT:

ehidna [41]

Answer:

The correct answer is letter "B": It reduces unintended outages.

Explanation:

Configuration management is the detailed registration, maintenance, and update of the information of the technological components of a company. The process aims to provide the organization with a stable system that allows the normal flow of the operations of the business.

System breakdowns, cyber-attacks, major power outages are prevented with this approach or mitigated when they happen unexpectedly.

4 0

3 years ago