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
aivan3 [116]
2 years ago
8

At the end of 2016, Nash's Trading Post, LLC has accounts receivable of $635,600 and an allowance for doubtful accounts of $23,1

40. On January 24, 2017, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,210.(a) Prepare the journal entry to record the write-off.
(b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off?
Business
1 answer:
vladimir2022 [97]2 years ago
4 0

Answer:

The computation and journal entry is shown below.

Explanation:

According to the scenario, the computation of the given data are as follows:

(a). The journal entry are as follows:

Allowance for doubtful A/c Dr.   $4,210

To Accounts Receivable A/c   $4,210

(Being the amount write off is recorded)

(b). Cash realizable value before write off can be calculated as follows:

Cash realizable value before write off = Receivable balance - Doubtful A/c Allowance

By putting the value, we get

Cash realizable value before write off  = $635,600 - $23,140

= $612460

And ash realizable value after write off can be calculated as follows:

Cash realizable value before write off = ($635,600 - $4,210)- ($23,140 - $4,210)

= $612,460

You might be interested in
Discuss ten (10) different purposes of an evaluation of salesperson performance and how each purpose affects the performance eva
ololo11 [35]

Answer:

1. To ensure that compensation and other reward disbursements are consistent with actual performance

2. To identify salespersons who needs to be promoted

3. To identify salespersons who should be fired/terminated

4. To determine the specific training and counseling needs of individual

5. To provide information for effective human resource (Succession) planning

6. To identify criteria that can be used to recruit and select salespersons in the future

7. To advise salespersons of work expectations

8. To motivate salespersons

9. To help salespersons set their career goals

10. To enhance effective communications between salesperson and sales manager

Explanation:

How each purpose affects the performance evaluation process

1. To ensure that compensation and other reward disbursements are consistent with actual performance

Compensation and rewards affects the performance and it should be on the merit.

2. To identify salespersons who needs to be promoted

Promotion shall be given on the basis of evaluation

3. To identify salespersons who should be fired/terminated

Termination should be on the basis of performance evaluation

4. To determine the specific training and counseling needs of individual

Training shall be provided on the basis of evaluation

5. To provide information for effective human resource (Succession) planning

Succession planning should be on the basis of performance evaluation so that the exceptional performers must be retained,

6. To identify criteria that can be used to recruit and select salespersons in the future

It helps in understanding the factors that will be useful to recruit and select salespersons

7. To advise salespersons of work expectations

On the basis of evaluation, it will be decided to communicate the work expectations

8. To motivate salespersons

It will help in understanding the factors which motivate the salespersons

9. To help salespersons set their career goals

Salespersons will understand about their future and set their career goals.

10. To enhance effective communications between salesperson and sales manager

It will help to communicate effectively about the expectations of  salesperson and sales manager  and better coordination

7 0
3 years ago
Phillips industries runs a small manufacturing operation. for this fiscal year, it expects real net cash flows of $197,000. the
Stolb23 [73]

Answer: Present value of the cash flows of the company is $1,158,824.

Explanation: Philips industries have the cash flow for $197,000. The industry needs to find the present value of the cash flow and the cash flows growth is decreasing every year by 6%.

The present value of the cash flows for perpetuity with decreasing growth rate is:

Present value = Cash flow for year 1 (C1) / (discount rate - growth)

where, Cash flow for the year 1 (C1) = $197,000

Discount rate (r) = 11%

Growth rate (g) = -6%

Present value of the cash flows (PV) = $197000/[0.11 - (-0.060)]

Present value of the cash flows (PV) = $197000/0.17

Present value of the cash flows (PV) = $1,158,824

Therefore the present value of the cash flows of the company is $1,158,824.

8 0
3 years ago
Juggernaut, Inc. makes large-size commercial appliances such as freezers and refrigerators. These items are bulky and the firms
-Dominant- [34]

Answer:

Regional Production

Explanation:

Juggernaut, Inc. can manufacture its bulk products by region, that way the distance to each selling point is less and the costs are lower.

7 0
2 years ago
The December 31, 2016 balance sheet of Jensen Company showed Equipment of $76,000 and Accumulated Depreciation of $18,000. On Ja
Blababa [14]

Answer:

A. $54,000

B. $9,000

Explanation:

A. Computation for the depreciable cost of the equipment

Book value, 1/1/17 $58,000

($76,000 – $18,000)

Less salvage value $4,000

Depreciable cost $54,000

($58,000-$4,000)

Therefore the depreciable cost of the equipment is $54,000

B. Computation for the revised annual depreciation

Revised annual depreciation = $54,000÷6 years

Revised annual depreciation = $9,000

Therefore the revised annual depreciation is $9,000

6 0
2 years ago
todd plans to purchase a life insurance policy from a stock life insurance company. What kind of policy is he planning to purcha
Tpy6a [65]

Answer:

The correct answer is B. Nonparticipating policy

Explanation:

It refers to the implementation of initiatives where the comments or considerations of the employees are not taken into account. In this type of actions, it is based on the utility for the totality of the persons of a company, and their acceptance by them is understood.

6 0
3 years ago
Other questions:
  • A. Suppose the wages of computer-factory workers rises. This will cause (the supply / the demand) of tablet computers to (shift
    6·1 answer
  • Libby Company manufactures a single product by a continuous process, involving the production departments. The records indicate
    13·1 answer
  • Nutrimax Corp., a breakfast cereal company, has designed extensive and elaborate advertising campaigns for its existing products
    9·1 answer
  • Pretax accounting income for the year ended December 31, 2021, was $53 million for Truffles Company. Truffles' taxable income wa
    7·1 answer
  • The income effect of a price change: A. produces a backward-bending income-consumption curve. B. is always positive. C. reinforc
    11·1 answer
  • A. Name any two:
    14·1 answer
  • At August 31, 2022, Carla Vista Company has this bank information: cash balance per bank $10,690; outstanding checks $840; depos
    15·1 answer
  • Whats your favorite team?
    15·2 answers
  • What opportunities do global markets present for a potential business owner?
    12·2 answers
  • Current-year North Carolina real property taxes will be prorated at the June 26 settlement. How would the $5,645 tax bill prorat
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!