Answer:At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $831,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $416 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions. View transaction list 1 Record the estimated bad debts expense. 2 Wrote off P. Park's account as uncollectible. 3 Reinstated Park's previously written off account 4 Record the cash received on account. Credit Note :· journal entry has been entered Record entry Clear entry View general journal
Answer:
Explanation:
The journal entries are shown below:
a. Short term notes receivable A/c Dr $5,300
To Service revenue A/c $5,300
(Being the service is provided based on the notes receivable)
b. Short term notes receivable A/c Dr $9,300
To Cash A/c $9,300
(Being cash is paid)
c. Short term notes receivable A/c Dr $4,300
To Account receivable A/c $4,300
(Being 3-month note receivable is accepted which is signed by the customer)
Answer:
C. transactional
Explanation:
In business, maintaining status quo means maintaining the pre-existing structure and culture that exist in the company. Transactional leaders tend to be less innovative , but very strict in enforcing pre-existing rules / conducts.
In order to maintain this status quo, transactional leaders tend to use rewards and punishment.
If an employee is following the company's requirement, that employee will be given rewards (such as bonuses or promotion). If the employee violate the company's rule, that employee will be punished (such as salary cut or firing)
Answer:
Part (a)
Equivalent units for materials using the weighted-average method is 70500 units
Part (b)
Equivalent units for conversion costs using the weighted-average method is 52735 units
Explanation:
Transferred Out(eqiv) Ending Inventory(equiv) Total
Materials 49600 20900 70500
Conversion Cost 49600 3135 52735
<u><em>Equivalent units for materials</em></u>
Transfered Out Units are 100% complete in terms of materials. Hence 49600 equivalent units.
Ending Inventory is 100% complete in terms of materials hence 20900 equivalent units.
<u><em>Equivalent units for Conversion Costs</em></u>
Transfered Out Units are 100% complete in terms of Conversion Costs. Hence 49600 equivalent units.
Ending Inventory is 15% complete in terms of materials hence 3135 equivalent units.
Answer:
The inventory turnover ratio is 13.3 times.
Explanation:
The inventory turnover ratio is a measure to see how many times the average inventory of the business has been sold or turned over during a period of time. The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory.
The average inventory = (opening inventory + closing inventory) / 2
Average inventory = (30083 + 34338) / 2 = 32210.5
Inventory turnover ratio = 428600 / 32210.5 = 13.3
