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3 years ago

The following events occur for Morris Engineering during 2018 and 2019, its first two years of operations.

Business

1 answer:

Firdavs [7]3 years ago

3 0

Answer:

February 2, 2018 Provide services to customers on account for $32,600.

Dr Accounts receivable 32,600

Cr Service revenue 32,600

July 23, 2018 Receive $22,500 from customers on account.

Dr Cash 22,500

Cr Accounts receivable 22,500

December 31, 2018 Estimate that 25% of uncollected accounts will not be received.

Dr Dad debt expense 2,525

Cr Allowance for doubtful accounts 2,525

April 12, 2019 Provide services to customers on account for $45,600.

Dr Accounts receivable 45,600

Cr Service revenue 45,600

June 28, 2019 Receive $6,000 from customers for services provided in 2018.

Dr Cash 6,000

Cr Accounts receivable 6,000

September 13, 2019 Write off the remaining amounts owed from services provided in 2018.

Dr Allowance for doubtful accounts 4,100

Cr Accounts receivable 4,100

October 5, 2019 Receive $40,500 from customers for services provided in 2019.

Dr Cash 40,500

Cr Accounts receivable 40,500

December 31, 2019 Estimate that 25% of uncollected accounts will not be received.

Dr Dad debt expense 2,850

Cr Allowance for doubtful accounts 2,850

Allowance for doubtful accounts = $1,575 (to cancel debit balance) + [($45,600 - $40,500) x 25%] = $1,575 + $1,275 = $2,850

Cash Accounts receivable

Debit Credit Debit Credit

22,500 32,600

6,000 22,500

<u>40,500 </u> 45,600

69,000 6,000

4,100

5,100

Allowance for doubtful accounts

Debit Credit

2,525

4,100

1,275

3) net realizable value of accounts receivable = $5,100 - $1,275 = $3,825

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Explanation:

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2 years ago

Evaluate Microsoft’s product and marketing evolution over the years. What has the company done well, and where did it falter?

OverLord2011 [107]

Explanation:

Microsoft is a giant technology company with worldwide influence.

Its success and reputation have ensured the company the position of the most valuable company in the world by market capital.

The popularization of the Windows Operating System, worldwide, was the product that consolidated the company as a giant in the business world. Technological companies, should focus on innovation, as each day more advances in technology appear to correct possible system errors, make the user's performance and use better and make production costs cheaper. With regard to the Operating System for computers, Microsoft has always evolved in launching new, more evolved versions, and making the previous ones obsolete for use, but one of the company's failures was to have lost the timing to develop an OS aimed at the use in cell phones, since that the company tried to enter this market, but was unsuccessful, and was defeated by its biggest competitors: Google and Apple.

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3 years ago

Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200

irga5000 [103]

Answer:

1. 20 units

2. $600

Explanation:

1. $C = 200 + 2q^{2}$

MC = 4q

Price, P = $80

For maximizing profits,

Marginal cost = Price of the commodity

4q = 80

q = 20 units

$C = 200 + 2q^{2}$

$C = 200 + 2(20)^{2}$

= 200 + 800

= 1,000

2. Profit = Total revenue - Total cost

= (Price × Quantity) - TC

= (80 × 20) - $1,000

= $1,600 - $1,000

= $600

3. We know that the firm in the short run will be produce at a point where total revenue is greater than the total variable cost

Average variable cost = variable cost ÷ quantity

$=\frac{2Q^{2}}{Q}$

= 2Q

MC = 4Q

Here, MC is greater than AVC at any given point.

so in the short run firm will producing short run positive profit.

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3 years ago

Blossom Company purchased a delivery truck for $32,000 on July 1, 2022. The truck has an expected salvage value of $4,000, and i

Nookie1986 [14]

The straight line depreciation expense in 2022 is $1500.

The straight line depreciation expense in 2023 is $3000.

<h3>What is the depreciation expense in 2022 and 2023?</h3>

The striaght line depreciation method spreads out the depreciation expense equally over the useful life of the project.

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($32,000 - $4,000) / 8 = $3000

The depreciation expense each year would be $3000 except in 2022 when the truck was used for 6 months.

Depreciation expense in 2022 = 6/12(3000) = $1500

To learn more about straight line depreciation, please check: brainly.com/question/6982430

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2 years ago

Serenity, Inc.'s Receivable increased by $ 43 comma 000 and its Accounts Payable increased by $ 23 comma 000. What is the net e

Shalnov [3]

Answer:

A net cash outflow or cash used up of $20,000

Explanation:

The statement of cash flows show the movement in cash balances between the start and end of an accounting period. This movement is as a result of 3 groups of activities namely; operating, investing and financing activities.

Cash activities related to elements of working capital are recognized in the operating section. An increase in a current asset other than cash is treated as an out flow of cash while an increase in a current liability is treated as an inflow of cash and vice versa.

Hence the net effect on cash from operations under the indirect method

= -$43,000 + $23,000

= -$20,000

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3 years ago