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Serga [27]
3 years ago
8

Jake Company records bad debt expense using the net credit sales method and has estimated that 5.5% of its credit sales will pro

ve to be uncollectible. During 2019, Jake Company reported net credit sales of $120,000 and collected $150,000 cash from its credit customers. The $150,000 includes a $6,000 recovery of an account receivable written off in the previous year. During 2019, Jake Company wrote-off as uncollectible accounts receivable of $4,000. Jake Company reported accounts receivable at January 1, 2019, of $88,000 and the allowance for doubtful accounts had an $8,000 credit balance at January 1, 2019.
Calculate the net realizable value of Jake Company's accounts receivable at December 31, 2019.
Please include your calculations and explanation.

Business
1 answer:
STatiana [176]3 years ago
5 0

Answer:

Detailed step wise solution is given below:

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The stage of the marketing research process that this realization correspond to is the INTERPRETING THE FINDING.
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6 0
2 years ago
Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating lever
Flura [38]

Question Completion:

Magic Realm, Inc., has developed a new fantasy board game. The company sold 32,400 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $567,000 per year, and variable expenses are $47 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 41,796 games next year (an increase of 9,396 games, or 29%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year?

Answer:

Magic Realm, Inc.

1-a. Contribution-Format Income Statement

For the last year ended December 31

Sales revenue          $2,170,000 (32,400 * $67)

Variable costs            1,522,800 (32,400 * $47)

Contribution               $647,200 (32,400 * $20)

Fixed expenses           567,000

Net operating income $80,200

1-b. Degree of Operating Leverage = Contribution/Net operating income

= 8.07

The expected percentage increase in net operating income for next year

= 235.3%

Explanation:

a) Data and Calculations:

Last year's figures:

Sales = 32,400 games

Selling price per game = $67

Variable cost per game = $47

Fixed expenses = $567,000 per year

1-a. Contribution-Format Income Statement

For the last year ended December 31

Sales revenue          $2,170,000 (32,400 * $67)

Variable costs            1,522,800 (32,400 * $47)

Contribution               $647,200 (32,400 * $20)

Fixed expenses           567,000

Net operating income $80,200

1-b. Degree of Operating Leverage = Contribution/Net operating income

= $647,200/$80,200 = 8.07

2. Next year:

Sales = 41,796 games

Sales revenue =         $2,800,332 (41,796 * $67)

Variable cost =               1,964,412  (41,796 * $47)

Contribution =              $835,920

Fixed costs =                  567,000

Net operating income $268,920

The expected percentage increase in net operating income for next year

Increase in net operating income = $188,720 ($268,920 - $80,200)

= $188,720/$80,200 * 100 = 235.3%

5 0
3 years ago
Bond market values are expressed as a percentage of their par (face) value. For example, a company's bonds might be trading at 1
Westkost [7]

The current market price of the bond is 103% of their par value

What percentage is the bond price compared to its par value?

The market bond convention is to quote the price at which the bond can be bought or sold in the market as a percentage of its par value.

The simple approach is to add a percentage sign to any bond price you are given, which means that 97 price means the bond price is 97% of par value.

In the same vein, 103 price means the quoted price of the bond is 103% of the par value of the bond/

Find a futher guide on bond pricing below:

brainly.com/question/15574519

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8 0
1 year ago
Indicate whether the following actions would increase, decrease, or not affect Indigo Inc.'s total assets, liabilities, and stoc
Elenna [48]

Explanation:

The effects are as follows:

a. In the first option, there is No effect in any item of the financial statements

b. In the second option, there is  No effect in any item of the financial statements

c. In the third option, there is No effect in any item of the financial statements

d. No impact on the assets but it increases the liabilities side and decreases the stockholder equity

The journal entry is shown below:  

Retained earning A/c Dr  XXXXX

    To Dividend payable  A/c XXXXX

(Being cash dividend declared)  

When the dividend is declared, the dividend amount should be subtracted from the retained earning account.  

And, since the dividend is declared that increases the balance of dividend

In addition, the dividend payable and the retained earning account have a credit balance. The increase in dividend payable account would have credit balance whereas the decrease in retained earning account has a debit balance.  

e. Paying the cash dividend declared in (d)        

The journal entry is shown below:

Dividend payable A/c XXXXX

           To Cash A/c XXXXX

(Being the cash dividend is paid)

Since it reduces the liabilities and the asset side also but it does not have any impact on the stockholder equity

7 0
3 years ago
A company purchased a machine for $193,000 on October 1, 2021. The estimated service life is 10 years with a $19,800 residual va
mestny [16]

Answer:

$4,330

Explanation:

the amount that needs to be depreciated = purchase price - residual value = $193,000 - $19,800 = $173,200

depreciation per year using straight line method = $173,200 / 10 = $17,320

depreciation per month = $17,320 / 12 = $1,443.33 per month

we must record 3 months of depreciation expense = 3  months x $1,443.33 per month = $4,330

December 31, 2021

Dr Depreciation expense 4,330

    Cr Accumulated depreciation - machinery 4,330

6 0
3 years ago
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