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Anna71 [15]
3 years ago
9

Jake Company records bad debt expense using the net credit sales method and has estimated that 5.5% of its credit sales will pro

ve to be uncollectible. During 2019, Jake Company reported net credit sales of $120,000 and collected $150,000 cash from its credit customers. The $150,000 includes a $6,000 recovery of an account receivable written off in the previous year. During 2019, Jake Company wrote-off as uncollectible accounts receivable of $4,000. Jake Company reported accounts receivable at January 1, 2019 of $88,000 and the allowance for doubtful accounts had an $8,000 credit balance at January 1, 2019. Calculate the net realizable value of Jake Company's accounts receivable at December 31, 2019.
Business
2 answers:
Nastasia [14]3 years ago
8 0

Answer:

net realizable value of Jack account receivables 42,600

Explanation:

we recognize bad debt as percent of credit sales:

120,000 x 5.5% = 6,600

<em><u /></em>

<em><u>account receivables balance:</u></em>

88,000 + 120,000 credit sales - 150,000 collected + 6,000 recovery = 64,000

allowance:

8,800 + 6,000 recovery + 6,600 bad debt for the year = 21,400

net:  64,000 - 21,400 = 42,600

Vedmedyk [2.9K]3 years ago
4 0

Answer:

Net realizable value accounts receivables December 31 2019 - $ 43,400

Explanation:

Computation of Net realizable value of Accounts receivable balance

<u>Accounts Receivable Movements</u>

Opening balance: Accounts Receivable                                   $   88,000

Add: Credit sales                                                                         $ 120,000

Add: Accounts receivable written off reinstated                       $     6,000

Less: Cash collections                                                                 $ ( 150,000)

Less; Receivables written off during the year                            <u>$ (     4,000)</u>

Accounts receivable - December 31 2019                               $   60,000

<u>Allowance for uncollectible accounts movements</u>

opening balance                                                           $ 8,000

Add: Bad debts expense provided for the year  

Credit sales * 5.5 %  $ 120,000                                    $  6,600

Add: Reinstatement of previous written off amount   $  6,000

Less: Receivable written off during                              <u>$ ( 4,000)</u>

Closing balance`                                                                              <u>$  16,600</u>

Net realizable value - Accounts Receivable                                 $ 43,400        

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pav-90 [236]

Answer:

3 - 4 Jobs

Explanation:

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5 0
3 years ago
What is the stock price per share for a stock that has a required return of 12%, an expected annual dividend of $3.15 per share
Simora [160]

Answer:

Price per share = $78.75

Explanation:

<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.</em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:

Price=Do (1+g)/(k-g)  

Where Do- Dividend now, g- growth rate, k- required rate of return(cost of equity)

<em>Note Do (1+g) represents the expected dividend in the first year</em>

DATA:

Do (1+g) = 3.15

g= 8%

k= 12%

Price per share = 3.15/(0.12- 0.08) = $78.75

Price per share = $78.75

5 0
3 years ago
Grossnickle Corporation issued 20-year, noncallable, 7.5% annualcouponbonds at their par value of $1,000 one year ago. Today, th
kicyunya [14]

Answer:

current price of the bond is $1,232.15  

Explanation:

given data

time N = 20 year

annual coupon bonds = 7.5%

future value = $1,000

interest rate = 5.5%

NPER = 19 year

solution

we will use here Present value formula to get current price of the bond.

so here PMT will be

PMT = future value × rate

PMT = 1000 × 7.5 %

PMT =  $75

so we use here formula in excel that is

= -PV(Rate,NPER,PMT,FV,type)

put here value and we get

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4 0
3 years ago
The overall process of dealing with all aspects of acquiring, keeping, and growing customers is referred to as ________.
Aleksandr [31]
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</span>
7 0
3 years ago
Roberson Corporation was organized on January 1, 2014, with authorized capital of 750,000 shares of $10 par value common stock.
Novosadov [1.4K]

Answer:

additional paid capital = $63000

Explanation:

Given data

share = 750000 @ $10 / common stock

issued =  30,000 shares @ $12 per share

purchased = 3,000 shares @  $13 per share

sold = 3,000 shares @ $14 per share

to find out

the amount of Additional paid-in capital

solution

we know here additional paid capital is sum of all value

so we find first

issued value that is

issue share value = no of share ×  excess per share

issue share value = 30000 ×  (12-10)

issue share value = $60000   ...............................1

and

purchased value

purchased share value = no of share ×  excess per share

purchased share value = 3000 ×  (13-10)

purchased share value = $9000   ...............................2

and

sold value

sold share value = no of share ×  excess per share

sold share value = 3000 ×  (14-10)

sold share value = $12000   ...............................3

so

additional paid capital is sum of equation 1 , 2 and 3

additional paid capital = $60000 + $9000 +$12000

additional paid capital = $63000

5 0
3 years ago
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