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tankabanditka [31]
3 years ago
11

Ransdell Corporation estimates that $15,000 of the current period’s credit sales will be uncollectible. Where will these bad deb

ts be reported in Ransdell’s financial statements?
Business
1 answer:
Naily [24]3 years ago
5 0

Answer:

Bad Debts Expense of $ 15,000 in the income statement and offset of receivables by $ 15,000 in the balance sheet.

Explanation:

The portion of credit sales considered to be uncollectible will be recorded as an expense in the income statement for the period. This is usually classified as bad debts expense and appears in the income statement as a debit or expense.

The corresponding credit shall be either to an Allowance for Uncollectible accounts if a provision is made or directly as a credit to the receivables account.

In either manner the effect is to reduce the receivable in the balance sheet

You might be interested in
On its December 31, 2017, balance sheet, Calgary Industries reports equipment of $470,000 and accumulated depreciation of $94,00
Nadya [2.5K]

Answer:

The cost balance on 31 December 2018 is $518,000 while that of accumulated depreciation is $126,400

Explanation:

The balance of fixed assets is computed as

Opening balance - accumulated depreciation - depreciation + Addition - Disposal

Hence given that on December 31, 2017, Calgary Industries reports equipment of $470,000 and accumulated depreciation of $94,000. During 2018, the company plans to purchase additional equipment costing $100,000 and expects depreciation expense of $40,000, Additionally, it plans to dispose of equipment that originally cost $52,000 and had accumulated depreciation of $7,600 the balance then

= $470,000 + $100,000 - $52,000

= $518,000

The accumulated depreciation

= $94,000 + $40,000 - $7,600

= $126,400

3 0
2 years ago
You are comparing two annuities with equal present values. The applicable discount rate is 6.5 percent. One annuity will pay $2,
MAVERICK [17]

Answer:

the annual payment for the second annuity is $2,130 paid at end of every year

Explanation:

We have following information for 1st annuity:

Rate: 6.5%

Payment (PMT): -$2,000, paid at beginning of every year

Tenor (Nper): 20 years

We use excel to calculate the present value of annuity = PV(rate,Nper,PMT,,1)

=PV(6.5%,20,-2000,,1) = $23,469

Then we calculate the payment for 2nd annuity = PMT(rate,Nper,PV,,0)

=PMT(6.5%,20,23469,,0) = -$2,130

Download xlsx
4 0
3 years ago
Yoshi operates a shoe store as a sole proprietorship. However, he is in poor health and may be unable to continue running the bu
Shalnov [3]

Answer:

A. ceases to exist unless sold or taken over by Yoshi's heirs. 

Explanation:

A sole proprietorship is a from of business which is owned by one person. The owner is usually the decision maker.

One of the disadvantages of sole proprietorship is lack of continuity. The business usually ends when the owner dies. Although , family members can take over running the business.

I hope my answer helps you.

6 0
3 years ago
Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets an
Drupady [299]

Answer:

Company A and Company B

Calculation of Goodwill on Acquisition:

= $212,433

Explanation:

a) Current market value of:

 Tangible physical assets = $1,234,567

  Intangible asset =                 $125,000

Total assets' value =            $1,359,567

less Liabilities:

  Operating =  $160,000

  Financial =     600,000      ($760,000)

Net value of assets =             $599,567

Purchase Price (Company B) $812,000

Goodwill                                  $212,433

b) Company A acquired Goodwill when it bought over Company B.  This is an intangible asset which is calculated by subtracting the net value of assets (the difference between the fair market value of the assets and liabilities) from the purchase price of the acquired subsidiary.

3 0
3 years ago
Have Americans always shared the same social and economic goals throughout history?
Elodia [21]

<u>Answer:</u>

<em>Yes, Americans always shared the same social and economic goals throughout history.</em>

<u>Explanation:</u>

The social economic segmentation of the American market. Market segmentation is the movement of distributing a widespread customer or business exchange, ordinarily consists of existent and potential clients, into sub-groups of customers which is recognized as segments which is based on the different type of shared features.

In distributing or segmenting businesses, researchers look for common features such as distributed needs, mutual interests, related lifestyles or even comparable demographic characterizations.

8 0
3 years ago
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