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Komok [63]
3 years ago
10

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]3 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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Marcia, a single individual, has qualified trade or business income after all applicable deductions of $240,000. Her business pa
Goshia [24]

Answer:

Compute Marcia's QBI deduction, assuming her overall taxable income before QBI is $300,000.

  • $40,000

Compute Marcia's QBI deduction, assuming her overall taxable income before QBI is $180,000.

  • $36,000

Explanation:

Marcia's QBI deduction limits:

lower between 20% of QBI or taxable income

$240,000 x 20% = <u>$48,000</u>

$300,000 x 20% = $60,000

or

higher between 50% of wages or 25% of wages + 2.5% of business property

$80,000 x 50% = <u>$40,000</u>

($80,000 x 25%) + (2.5% x $50,000) = $21,250

Marcia's QBI deduction limits:

lower between 20% of QBI or taxable income

$180,000 x 20% = <u>$36,000</u>

$300,000 x 20% = $60,000

or

higher between 50% of wages or 25% of wages + 2.5% of business property

$80,000 x 50% = <u>$40,000</u>

($80,000 x 25%) + (2.5% x $50,000) = $21,250

7 0
2 years ago
Photo Co. operates four film developing plants in upstate New York. The four plants are identical. They employ the same producti
GalinKa [24]
Films where made to entertain other people so they would get money that is the answer
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3 years ago
What was created to reform and to store confidence in the stock market by providing a means to monitor the market and to enforce
Vaselesa [24]

<u><em>Securities and Exchange Commission is the answer that you are looking for</em></u>

<em><u />Hope this helps :)</em>

7 0
3 years ago
Sears, Roebuck and Company was a pioneer in: a. providing electric power for New York City b. manufacturing cheap, practical clo
Serjik [45]

Option C

Sears, Roebuck and Company was a pioneer in: selling goods by mail

<u>Explanation:</u>

The endurance of Sears has traversed and incorporated the emergence of contemporary American purchaser habits. Sears berthed the platform for today’s omnipresent online marketplace by their fabulous inventory and the colossal mail-order deals it performed for above a centenary.

Mail-order firms like Sears held capable to enter underserved pastoral regions by pitching on modish foundations, such as the tracks that connected far-flung sections of the nation. It taught millions of purchasers regarding mail-order systems, such as transportation, payment methods, exchanges, and replacements.

8 0
3 years ago
Jonathan is in the process of refinancing his home loan. Due to the lowering of interest rates and Jonathan's credit score impro
vodomira [7]

Answer:

The correct answer is letter "C": Prepayment Penalty Clause.

Explanation:

The Prepayment Penalty Clause serves as collateral for lenders when borrowers pay off the sum of debt before agreed. Even though the debt would be totally paid, financial institutions lose profits in interest rates. Then, the Prepayment Penalty Clause states a fee -usually a percentage- should be paid in case the lender finishes to pay the debt before what was signed in a loan.

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