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yaroslaw [1]
3 years ago
10

The existing balance in the Allowance for Doubtful Accounts is considered in computing bad debt expense when using the percentag

e-of-receivables basis. The existing balance is ignored when using the percentage-of-sales basis. The existing balance in Allowance for Doubtful Accounts is considered in computing bad debt expense in the
Business
1 answer:
kolbaska11 [484]3 years ago
8 0

Answer:

The existing balance in Allowance for Doubtful Accounts is considered in computing bad debt expense in the percentage of receivables basis.

Explanation:

Percentage of receivables basis is preferred over direct write-off of bad debt expenses and is used in the calculation of bad debts, this is done by multiplying the accounts receivable by percentage of expected noncollectable debts and then subtracting accounts for bad debts are then subtracted from accounts receivable on the balance sheet and the result reported as net accounts receivable. It is used in calculating the bad debt expense in each account reporting period.

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On September 1, 2020, Windsor Company sold at 104 (plus accrued interest) 3,840 of its 8%, 10-year, $1,000 face value, nonconver
Rzqust [24]

Answer:

total sales value = 3,840 x $1,000 = $3,840,000 x 1.04 = $3,993,600

since each bond carried 2 detachable stock warrants, we must include in the bond issuance the value of the stock warrants = 3,840 bonds x 2 warrants x $2 per warrant = $15,360

the premium on bonds payable = total cash received - bonds payable - stock warrants = $3,993,600 - $3,840,000 - $15,360 = $138,240

the journal entry for recording the bond issuance:

September 1, 2020, 3,840 8% bonds issued

Dr Cash 3,993,600

    Cr Bonds payable 3,840,000

    Cr Premium on bonds payable 138,240

    Cr Additional paid in capital - warrants 15,360

5 0
3 years ago
Exercise 183 Wayne Company reported net income of $265,000 for 2020. Wayne also reported depreciation expense of $45,000 and a l
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Answer:

Net cash flow of the operating activities is $356,000

Explanation:

                               Wayne Company

                   Partial statement of Cash flow

          For the year Ended December 31, 2021

Cash flow from operating activities:

Net Income                                                         $265,000

<em />

<em>Adjustment to reconcile net income to net  </em>

<em>cash provided by operating activities</em>

Depreciation expenses                    $45,000

Loss on sale of equipment               $8,000

Decrease in accounts receivable     $15,000

Decrease in prepaid expenses         $6,000

Increase in accounts payable            <u>$17,000</u>    <u>$91,000</u>

Net cash provided by operating activities       <u>$356,000</u>

7 0
3 years ago
A pension plan helps pay for ______.
GrogVix [38]
C retirement benefits.  This is why retirees are sometimes called "pensioners"
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3 years ago
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If the absolute value of the own price elasticity of demand is greater than 1, then demand is said to be:
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Answer:

A. elastic.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is elastic when a change in price leads to a change in quantity demanded. The coefficient of elasticity for elastic demand is usually greater than one.

Demand is inelastic when a change in price has no effect on quantity demanded.

The absolute value of the coefficient of elasticity for inelastic demand is usually less than 1.

Demand is unitary when a change in price leads to an equal proportional change in quantity demanded.

The absolute value of the coefficient of elasticity for unitary demand is usually equal to one .

I hope my answer helps you.

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3 years ago
Logistics Trucking Company operates a fleet of fuel trucks. When one of the trucks is positioned to receive a load of biofuel, i
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