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Sidana [21]
3 years ago
8

Rankine Company estimates its bad debts expense by aging its accounts receivable and applying percentages to various age groups

of the accounts. Rankine calculated a total of $8,000 in possible credit losses as of December 31. Accounts Receivable has a balance of $256,000, and the Allowance for Doubtful Accounts has a credit balance of $1,000 before adjustment at December 31. What is the December 31 adjusting entry to provide for credit losses? General Journal Description Debit Credit Answer Answer Answer Answer Answer Answer What is the net amount of accounts receivable that should be included in current assets?
Business
1 answer:
guapka [62]3 years ago
4 0

Answer:

Net amount of accounts receivable that should be included in current assets:

= Accounts receivable - Allowance for doubtful accounts

= $256,000 - $8,000

= $248,000

The journal entry is as follows:

Bad debt expense[$8,000 - $1,000] A/c Dr. $7,000

           To Allowance for doubtful accounts               $7,000

(To record the bad debt expense)

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A company purchased $9,100 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $455 of that merchandise.
elena-14-01-66 [18.8K]

Answer:

$259.35

Explanation:

The computation of the amount of cash paid is shown below:

= (Purchase value of merchandise - returned goods of merchandise - discount charges)

= ($9,100 - $455 - $259.35)

= $8,385.65

The discount charges is

= (Purchase value of merchandise - returned goods of merchandise) × discount rate

=  ($9,100 - $455) × 3%

= $259.35

We simply applied the above formula

3 0
3 years ago
If a consumer is waiting to buy a sweater he or she found at a department store until after the holiday season, which factor is
rjkz [21]
"Sweater" is the factor that is most likely influencing the decision to wait because it probably isn't cold enough for a sweater yet (I think?)
4 0
3 years ago
Read 2 more answers
Yoga Center Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's N
Natalija [7]

Answer:

The correct answer is E.

Explanation:

Giving the following information:

Yoga Center Inc. is considering a project that has the following cash flow.

Year 0= -1200

Year 1= 400

Year 2= 425

Year 3= 450

Year 4= 475

Cost of capital= 14%

To calculate the Net Present Value we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

For example:

Year 3= 450/(1.14^3)

NPV= $62.88

7 0
3 years ago
1.4. Discuss the role of the Competition Commission why it cannot deal with the
jolli1 [7]

Answer:

The Competition Commission is a statutory body constituted in terms of the Competition Act, No 89 of 1998 by the Government of South Africa empowered to investigate, control and evaluate restrictive business practices, abuse of dominant positions and mergers in order to achieve equity and efficiency in the South ...

5 0
3 years ago
Read the following selection, and answer the following question.
pshichka [43]

Answer: The answer is given below

Explanation:

1. False

The is not an effective beginning for the letter. From the question, we can see that the person needs invoicing process information. The best beginning will have been "Based on your request to know about the invoicing process information ....

2. B. Satisfy the inquiry and take the opportunity well introduce another product as well.

The technique that should be used to promote a business when responding to a customer's inquiry is by first satisfying the inquiry. This is done by giving a detailed and correct answer to the question that is asked by the person. After satisfying the person, then another product can be introduced to the person. The person will be willing to listen after his curiosity or inquiries gas been satisfied.

3. The strategies that a direct response message should use are:

A. List answers to the customer's questions in the order asked.

B. Close pleasantly with a forward looking statement

C. Place the most important information first.

When replying direct messages, the most vital information should be put at the top so that it could easily be seen by the customer and answers should also be provided to the questions asked by the customer based on the way that the customer asked the questions. This will make the reply logical and easily comprehendible. Lastly, the closing remarks should be pleasant, and positive.

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