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Klio2033 [76]
3 years ago
5

ABC company uses the allowance method to account for uncollectible accounts receivable. At the beginning of the year, the allowa

nce for bad debts account had a credit balance of $1,000. During the year, ABC Co, wrote off $2,100 in bad debts, and recorded bad debt expense of $2,700. What is the year end balance in the allowance account?
Business
1 answer:
arsen [322]3 years ago
6 0

Answer:

Balance in the Allowance Account : $1600

Please see details below:

Explanation:

When the company determined the bad debt balance, the company made the next entry to the accounting system.

Debit - Bad Debts Expense $1000  

Credit - Allowance for Doubtful Accounts  $1000

When the company write-off some debts it makes the next entry.

Debit - Allowance for Doubtful Debts $2.100

Credit - Accounts Receivable  $2.100

When the company recorded bad debt expenses:

Debit - Bad Debts Expense $2700  

Credit - Allowance for Doubtful Accounts  $2700

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Samuel Jenkins made two investments; the first was 13 months ago and the second was two months ago. He just sold both investment
tatiyna

Answer:

short: 11,000 -->  1,320 income tax

long:  11,000 --> zero tax income

Explanation:

The capital gains are clasiffied as long.term gain once they were held for period of time of more than a year during the current holder.

Thus, the 13 month ago investment will be considered long term

while the other short term

the rate for short term is 12% at Samuel income bracket

while the long.term capital gain will not be taxed,

short term:

11,000 x 12% = 1.320‬

7 0
4 years ago
Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7
mojhsa [17]

Answer:

The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $32,280,000.

Explanation:

Proper year zero cash flow to use in evaluating this project = After-tax value of the land + Cost of manufacturing new plant + Grading Expenses

= $10,100,000 + $21,300,000 + $880,000

= $32,280,000

Therefore, The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $32,280,000.

NOTE :

- The after-tax value of the land of $10,100,000 should be considered since it is an opportunity cost of capital if the land is used rather than sold.

- The cash outlay of $21,300,000 for the plant cost and the $880,000 for the grading costs are the part of the initial investment in year 0.

6 0
3 years ago
Inventory reduction via JIT is an effective tool for identifying
asambeis [7]

Answer:

B. Causes of variability

Explanation:

Inventory reduction via Just in time is a technique that aligns raw material orders from suppliers directly to production schedules. It helps in reducing inventory costs. It increases efficiency and reduces waste as goods are only received when the organization using JIT needs them for operations. In JIT, production period is short, warehouse need is minimize thus reducing costs. Also, it becomes of useful tool in identifying causes of variability. It reduces variability caused by both internal and external factors. Variability are normal deviation from the most efficient and optimum process.

4 0
3 years ago
The body of a routine message that requests information or action should
Papessa [141]
Your answer is A.) present details that explain your request
3 0
4 years ago
Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the prod
Alex73 [517]

Answer:

Consider the following calculations.

Explanation:

Five companies in the core segment are Abby, Brat, Bat, Cent and Clack

Calculation Total Production Capacity :-

Consider the attached archive.

Total Production Capacity to determine the industry's Current Capacity to produce in the core

segment without Brat.

Production Capacity = 7025 - 1250 = 5775

The Companies can work in two shifts.

Total Production Capacity = 5775 * 2 = 11550

The Answer is "11550".

Download xlsx
8 0
3 years ago
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