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erica [24]
3 years ago
10

Marmol Corporation uses the allowance method for bad debts. During year 1, Marmol charged $30,000 to bad debt expense, and wrote

off $25,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of:
a. $0
b. $4,800
c. $25,200
d. $30,000
Business
1 answer:
4vir4ik [10]3 years ago
4 0

Answer: Option (d)

Explanation:

Under this case the write off will be as follow:

                                                                      Debit         Credit

Allowance for doubtful accounts                25,200  

Accounts receivables                                                     25,200

Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.

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Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual i
Alisiya [41]

Answer and Explanation:

The journal entries are shown below:

1. Inventory $1,800

        Accounts Payable $1,800

(Being purchased on account)

2. Inventory $50

     To Cash $50

(being freight paid)

3. Accounts Payable $51

     To Inventory $51

(being the returned calculator is recorded)

4. Accounts Receivable $670

       To Sales Revenues $670

(Being sales is recorded)

5. Cost of Goods Sold $460

      To Inventory $460

(Being cost of goods sold is recorded)

6.  Sales returns $40

         To Accounts Receivable $40

(being sales return is recorded)

7. Inventory $28.20

      To Cost of Goods Sold $28.20

(Being cost return is recorded)

8. Accounts Receivable $780

      To Sales Revenues $780

(Being the sales is recorded)

9. Cost of Goods Sold $560

      To Inventory $560

(Being the cost of goods sold is recorded)

5 0
3 years ago
Michael, a systems analyst, is preparing a closed wiki site for Northstate Bank. He has written permission from eight other comp
AysviL [449]

Answer:

The correct answer is Formal Benchmarking.

Explanation:

The English term "benchmark" comes from the words "bench" (bench, table) and "mark" (brand, sign). In the original meaning of English, the word compound could however be translated as a measure of quality. In other words, benchmarking is a way to determine how well a company performs, compared to others.

In order to be more competitive at present, it is necessary to use benchmarking since it provides strategies that allow identifying the best keys to the company's success, so that by implementing them the organization can be a leading and competitive company in a changing market and global in which business organizations currently have to see each other.

The majority of authors relate benchmarking with competitiveness and business improvement, being "the company" its natural scope. However, the potential benefits of its use make it considered in other areas, such as "public organizations", and at other levels, "sectoral" and "environment" (regional, national and international). This complicates the definition of the concept, since it is a tool that has multiple application possibilities, pursues different objectives in each case, and uses its own methodology in each area.

3 0
3 years ago
TASHA WANTS TO BE A DOCTOR WITCH CTSO SHOULD SHE JOIN
prisoha [69]
  It depends on how it fits into her schedule. If she has toddlers that don't go to school and is a single mom,no. If she is single and has no other interests,then yes.
4 0
3 years ago
You are considering a project with an initial cost of $7,500. What is the payback period for this project if the cash inflows ar
Sliva [168]

Answer:

A. 3.21 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $7,500

In year 1 = $1,100

In year 2 = $1,640

In year 3 = $3,800

In year 4 = $4,500

If we sum the first 3 year cash inflows than it would be $6,540

Now we deduct the $6,540 from the $7,500 , so the amount would be $960 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $4,500

So, the payback period equal to

= 3 years + $960 ÷ $4,500

= 3.21 years

In 3.21 yeas, the invested amount is recovered.  

4 0
3 years ago
the market interest rate is often called the group of answer choices effective rate. stated rate. contractual rate. coupon rate.
fredd [130]

The market interest rate is often called the effective interest rate. It is also known as the yearly equivalent rate, the effective interest rate, and the effective rate (AER).

The true return on a savings account or any other interest-paying investment is known as the effective annual interest rate when the advantages of compounding over time are taken into consideration. Additionally, it shows the precise percentage rate of interest on all unpaid debts, such as credit card balances and loans.

The effective yearly interest rate serves as a proxy for the actual interest rate on a loan or investment. The most important feature of the effective yearly interest rate is the fact that it takes into account the fact that greater effective interest rates will arise from more frequent compounding periods.

To know more about interest rates click here,

brainly.com/question/1314830

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5 0
1 year ago
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