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
Alla [95]
3 years ago
10

Buchanan Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is probable that B

uchanan will lose the case and that a reasonable estimate of damages to be paid by Buchanan is $305,090. In light of this case, Buchanan is considering establishing a $112,720 self-insurance allowance.
What entry, if any, should Buchanan record to recognize this loss contingency? (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)


Account Titles and Explanation


Debit


Credit
Business
1 answer:
Lisa [10]3 years ago
8 0

Answer:

Dr Lawsuit Expense 305,090

Cr Lawsuit Liability 305,090

Dr Lawsuit Loss 112,720

Cr Lawsuit Liability 112,720

Explanation:

Preparation of Journal entries

Based on the information given we were told that Buchanan had to paid the amount of $305,090 for damages which means that the Journal entry will be:

Dr Lawsuit Expense 305,090

Cr Lawsuit Liability 305,090

Based on the information given we were told that he was considering to establish the amount of $112,720 as a self insurance allowance which means that the Journal entry will be:

Dr Lawsuit Loss 112,720

Cr Lawsuit Liability 112,720

You might be interested in
Compute the annual dollar changes and percent changes for each of the following accounts. (Round percent change to one decimal p
elixir [45]

Answer and Explanation:

The computation of annual dollar changes and percent changes for each of the following accounts is shown below:-

Particulars       2015         2014       Changes in dollar    Percent change

                           a             b               c = (a - b)                   d = c ÷ b

Short term    

investments $380,168   $239,377    $140,790                    58.82%

Accounts  

receivable  $102,276    $105,903      -$3,627                     -3.42%

Notes

payable        0                $93,973      -$93,973                    -100%

4 0
3 years ago
This Government Representative is appointed by the Contracting Officer to serve as a technical liaison between the Government an
Alex Ar [27]

Answer:

Contracting Officer Representative

Explanation:

  • An agent of a contracting officer is a person appointed in compliance with the subdivision of DFARS .and approved by the contracting agency in law to automate repetitive technological or essential functions.
  • A security officer is a man who shares information to interact and coordinate their events between two organizations.

by these process COR work.

3 0
3 years ago
A new business owner would want to know the competition’s strengths for all the following reasons EXCEPT
Rudiy27

Answer:

Option D

To me, I think option D is the most preferred answer

6 0
3 years ago
People who like working with their hands might enjoy a career as a
alexira [117]
Massage therapist or professional Typer
7 0
2 years ago
Read 2 more answers
The demand curve has what kind of slope?
Leto [7]

It is a graph that shows the relationship between the quantity demanded of a commodity at different prices over a given period of time. It is observed that the demand curve slopes downward from left to right. It shows it has a negative slope which implies that consumers purchase more of commodity at lower prices than at higher prices.

Hope this helps and pls give me brainliest

8 0
3 years ago
Other questions:
  • Question: Jane wants to open a brokerage account. What is one thing she should consider when trying to decide which type of acco
    14·1 answer
  • The potential loss for a writer of a naked call option on a stock is Multiple Choice increasing when the stock price is decreasi
    14·1 answer
  • Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 50 billion cases of cola were sold ever
    5·1 answer
  • Franklin has $2,500 in a savings account that pays interest at the rate of 4% annually. how much interest will he earn after one
    7·1 answer
  • Abby received requests from three families to babysit a toddler for four hours on friday night. she can only babysit for one of
    6·1 answer
  • The EPBO for a particular employee on January 1, 2021, was $150,000. The APBO at the beginning of the year was $30,000. The appr
    9·1 answer
  • The Carbondale Hospital is considering the purchase of ambulance. The TheXarbondale Hospital is considering the purchase of ambu
    7·1 answer
  • Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs t
    8·1 answer
  • What does making a good decision mean?? How can I make a good decision?
    8·1 answer
  • The purpose of the cash flow statement is to:
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!