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2 years ago

During 2004, ABC Company had $750,000 of net credit sales. Accounts Receivable had a December 31, 2004, balance of $250,000.

Business

1 answer:

eimsori [14]2 years ago

8 0

Answer:

c. $24,500

Explanation:

The allowance for doubtful accounts is a contra-asset account that records the amount of receivables expected to be uncollectiblea, makes a reduction of the total amount of accounts receivable appearing on a company’s balance sheet. There are two way to estimate uncollectible accounts: the percentage of sales method and the accounts receivable aging method.

ABC Company uses the percentage of sales method - application a flat percentage to the total amount of net credit sales for the period.

Estimated uncollectible = 3% x $750,000 = $22,500

The company establishes an allowance for doubtful accounts for $22,500 while simultaneously reporting $22,500 in bad debt expense.

Before adjusting on December 31, 2004, the Allowance for Doubtful Accounts had a credit balance of $2,000.

The balance in the allowance for doubtful accounts after adjustment is $22,500 + $2,000 = $24,500

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3 years ago

The san francisco giants sell tickets based on ____________, where the prices often change based on demand and other variables.

pychu [463]

The San Francisco Giants sell tickets based on dynamic pricing, where the prices often change based on demand and other variables.
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2 years ago

Fern invested $6400 into a continuously compounded account with an interest rate of 1.5%. After 10 years, how much is the accoun

777dan777 [17]

Answer:

FV= $7,435.74

Explanation:

Giving the following information:

Initial investment= $6,400

Interest rate= 1.5%

Number of periods= 10 years

To calculate the value of the account in ten years, we need to use the following formula:

FV= PV*e^(i*n)

FV= 6,400*e^(0.015*10)

FV= $7,435.74

6 0

3 years ago

On January 15, Cheyenne Corp. sells merchandise on account to Flounder Associates for $4500 with terms 2/10, n/30. On January 20

Leni [432]

Answer:

The amount of cash received on January 24 is $3332

Explanation:

The amount of cash received will be for the net amount of receivable after adjusting for sales returns and the sales discount as the payment is received within the discount period of 10 days as stated by the term 2/10 which means a 2% discount if payment is received within 10 days of sale.

The accounts receivable at January 15 after sale were $4500. Out of this amount, $1100 of returns are made. Thus, the remaining balance of accounts receivables after return is $4500 - $1100 = $3400

The discount received will be = 3400 * 2% = $68

Thus, the cash received on January 24 will be 3400 - 68 = $3332

6 0

3 years ago

On January 1, 2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salv

JulijaS [17]

Answer:

There is not gain in this operation so the answer is $0

Explanation:

There are some journal entries that needs to be done to have a full picture of the statement

* Purchase

Fixed Assets 690.000

Cash 690.000

* Monthly depreciation

Since, the FA was depreciated during 8 years. Firstly you have to calculate the amount that can be depreciate on a monthly basis

Amount to be depreciated = (Cost of the FA - Salvage value) = (690.000-48.600) = 641.400

Then calculate the yearly depreciation

Yearly depreciation = ((amount to be depreciated/useful life) * years used) =

(641.400/10*8) = 513.120

then the journal entry to record the monthly depreciation for 8 years is

Depreciation expense 513.120

Acc Depreciation 513.120

* Post the Journal Entry to record the sell of FA

You have to reverse the Acc Depreciation and credit the FA

Cash 152.500

Fixed assets 690.000

Acc depreciation 513.120

Loss on sale of FA 24.380

6 0

3 years ago