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

$40,000

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$36,000

Explanation:

Marcia's QBI deduction limits:

lower between 20% of QBI or taxable income

$240,000 x 20% = $48,000

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

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($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% = $36,000

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

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

$80,000 x 50% = $40,000

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

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3 years ago

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Option C

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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.

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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

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Answer:

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

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