1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dedylja [7]
2 years ago
8

Accounts receivable $1,050,000Allowance (90,000)Cash realizable value $960,000During 2007 sales on account were $290,000 and col

lections on account were $172,000. Also during 2007 the company wrote off $16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $108,000.52. Bad debts expense for 2007 isa. $ 34,000b. $ 18,000c. $108,000d. $ 2,000
Business
1 answer:
Flauer [41]2 years ago
5 0

Answer:

a. $ 34,000

Explanation:

The entry when the company wrote off uncollectible accounts:

Debit Allowance for Doubtful Accounts $16,000

Credit Uncollectible accounts $16,000

At the end of 2007, Allowance for Doubtful Accounts before adjusting trial balance: $90,000-$16,000 = $74,000

The company estimates bad debts based on outstanding receivable accounts. So, the amount of Bad debts expense for 2007 should be:

$108,000 - $74,000 = $34,000

The entry will be record:

Debit Bad debts expense $34,000

Credit Allowance for Doubtful Accounts $34,000

You might be interested in
Each year statistics are published giving the number of persons killed in highway accidents in the u.s.a. the total for last yea
kogti [31]
<span> the number of persons killed in highway accidents in the u.s.a. in 2016 was: 40,000The number of this deaths has been increased for about 6% compared to the previous year. This makes 2016 so far became the deadliest year in term of highway accidents</span>
8 0
3 years ago
On May 1 Ralph offers to cure and smoke Sam’s pork, and promises to keep the offer open until June 1. On May 3 Ralph mails Sam a
garik1379 [7]

Explanation:

I would say may 6th because Sam didn't know Ralph was going to revoke until May 5th and that only makes it half final because Ralph wouldn't know in anyway except through a letter that Sam has received his letter and agreed or disagreed.

May 6th is when he gets the confirmation. So both people know on May 6th.

If this is too confusing ( like it was for me I had to read it 6 times ) then think about it this way. if you make a deal with a fisherman to buy fish on Wednesday and you send him a lettering sunday that arrives a day later, the fisherman won't know until a day later (Monday) and on that day he receives it you don't know if he got it. That's why it's half official. when he send a letter that arrives the day after he got your letter (tuesday) then you know that he understood you won't make it on Wednesday making it fully official.

does this make sense? if so hope it helps.

6 0
3 years ago
Sheridan Company applied FIFO to its inventory and got the following results for its ending inventory. Cameras 113 units at a co
ICE Princess25 [194]

Answer:

Ending inventory is <u>$24,917</u>.

Explanation:

Lower-of-cost-or-net realizable value method implies that whichever is lower between the cost per unit and the net realizable value per unit is used to value the ending inventory of an item.

The ending inventory can therefore be determined as follows:

<u>For Cameras:</u>

Units = 113

Cost per unit = $61

net realizable value per unit = $74

We choose cost per unit since it is lower and we have:

Cameras ending inventory = 113 * $61 = $6,893

<u>For Blu-ray players:</u>

Units = 153

Cost per unit = $77

net realizable value per unit = $50

We choose net realizable value per unit since it is lower and we have:

Blu-ray players ending inventory = 153 * $50 = $7,650

<u>For iPods:</u>

Units = 133

Cost per unit = $86

net realizable value per unit = $78

We choose net realizable value per unit since it is lower and we have:

iPods ending inventory = 133 * $78 = $10,374

<u>Calculation of ending inventory:</u>

Ending inventory = Cameras ending inventory + Blu-ray players ending inventory + iPods ending inventory = $6,893 + $7,650 + $10,374 = $24,917

8 0
2 years ago
22. Preferred stockholders hold a claim on assets that has priority over the claims of A) both common stockholders and bondholde
DedPeter [7]

Answer:

C) common stockholders, but after that of bondholders.

Explanation:

Preferred stockholders hold a claim on assets that has priority over the claims of common stockholders but after that of bondholders.  

The preferred shareholder is given preference for the distribution of dividends, which is higher than the common stock. It is paid as per the discretion of the company´s directors. Instead, they have limited right and they do not vote for corporate governance like a common stockholder. In the case of the dissolution of the company, the preferred shareholders will still receive payment due to them in terms of dividends. They have a feature of both bonds and equity stockholders.

6 0
3 years ago
Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (U
scZoUnD [109]

Answer:

a. 24%

b. 12%

Explanation:

Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).

                               Chuck Marginal Tax Rate

a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:

= $75,000 + $40,000

= $115,000

Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.

b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:

= $75,000 - $40,000

= $35,000

The marginal tax rate for taxable income of $35,000 is 12% according US tax rate schedule.

Note: the interest is categorized as interest from municipal bond, so it is tax free.

It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.

3 0
3 years ago
Other questions:
  • What is an example of a recreational goal??
    11·1 answer
  • X-Tel budgets sales of $60,000 for April, $100,000 for May, and $80,000 for June. In addition, sales are 40% cash and 60% on cre
    10·1 answer
  • A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the
    10·1 answer
  • When calculating the inventory turnover at cost, the first step is to calculate A. Cost of goods sold B. Average inventory at re
    6·2 answers
  • Michael is the owner of a restaurant in downtown Buffalo and recently signed a long-term lease with the building's owner. Since
    5·2 answers
  • The U.S. Treasury maintains accounts at commercial banks. What would be the consequences for the money supply if the Treasury sh
    12·1 answer
  • Prepare an amortization schedule for a three-year loan of $84,000. The interest rate is 9 percent per year, and the loan calls f
    6·1 answer
  • Company AA had net income of $20,000 in 2017. Compared to previous year, Accounts Receivable decreased by $10,000, Prepaid Rent
    11·1 answer
  • As it applies to corporations, employee-owner separation means that many employees
    15·1 answer
  • The yield on a one-year Treasury security is 4.2300%, and the two-year Treasury security has a 6.3450% yield. Assuming that the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!