Answer:
The amount of Bad Debts Expense should be recorded when the year-end adjusting entry is prepared is $4,788
Explanation:
As the company use Percentage of sales method for estimating bad debt, the Bad Debt expenses for the year will not be dependent on the Opening balance of Allowance for Uncollectible Accounts, instead, it is recorded at the amount of Net Credit Sales x Percentage of uncollectible from Credit Sales.
Thus, we have bad debt expenses for the period is Net of Credit Sales x Percentage of uncollectible from Credit Sales = 798,000 x 0.6% = $4,788.
The detailed adjusting entry for Bad Debt Expenses at year-end is:
Dr Bad Debt Expense 4,788
Cr Allowance for uncollectible accounts 4,788
Answer:
Variable cost= $73.50
Explanation:
The high low method is used to get the fixed and variable cost of a business activity given limited data. It involves taking the highest and lowest points, then comparing the total cost at these points.
We use the following formula
Variable cost= (Highest activity cost - Lowest activity cost)/ (Highest activity unit - Lowest activity unit)
Variable cost= (207,250- 97,000)/ (5,900-4,400)
Variable cost= 110,250/ 1,500
Variable cost= $73.50
Answer:
$144
Explanation:
The computation of the net income is shown below:
Net income = Net sales - Cost of goods sold - operating expenses - income tax expense
where,
Cost of goods sold = $2,800 - $880 = $1,680
Income tax expense = ( Net sales - Cost of goods sold - operating expenses) × tax rate
= ($2,800 - $1,680 - $880) × 40%
And, the other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= $2,800 - $1,680 - $880 - $96
= $144
<span> The fact that Pat has a savings account and a car loan from a not-for-profit financial institution owned by its member , means that </span>Pat is probably a member of the financial institution: Credit Union. This type of financial institution is created and operated by its members (the members are <span>depositors, borrowers, and shareholders.</span>
Answer:
b. $1,450
Explanation:
Data provided as per the question
Winnings in slot = $250
Winnings in poker = $1,200
The computation of gross income is shown below:-
Total amount in Gross Income = Winnings in slot + Winnings in poker
= $250 + $1,200
= $1,450
Therefore for computing the total amount in gross income we simply add winning in slot with winning in poker.
