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satela [25.4K]
3 years ago
14

Your company receives advance payment in October for services that are provided during November. Which of the following statemen

ts is correct?
(A) An expense is recorded in October and revenue will be recorded in November.
(B) A liability is recorded in October and revenue will be recorded in November.
(C) Revenue and expenses are recorded in October.
(D) Revenue is recorded in October and an expense will be recorded in November.
Business
1 answer:
Marianna [84]3 years ago
8 0

Answer:

(B) A liability is recorded in October and revenue will be recorded in November

Explanation:

When a company receives money in advance of earning it, the accounting entry is a debit to the asset Cash for the amount received and a credit to the liability account such as Customer Advances or Unearned Revenues

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Morrow Inc. uses the percentage of credit sales method of estimating doubtful accounts. The Allowance for Doubtful Accounts has
Black_prince [1.1K]

Answer:

$9,400

Explanation:

The computation of ending balance in the Allowance for Doubtful Accounts account is shown below:-

The ending balance in the Allowance for Doubtful Accounts account = Net credit sales × Bad debt losses + Unadjusted credit balance

= $190,000 × 3% + $3,700

= $5,700 +$3,700

= $9,400

Therefore for computing the ending balance in the Allowance for Doubtful Accounts account we simply applied the above formula.

7 0
2 years ago
Which strategy are you using when you only read the title section headings and captions?
Andru [333]

Answer:

Skimming

Explanation:

7 0
2 years ago
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Two firms, A and B, each currently dump 50 tons of chemicals into the local river. The government has decided to reduce the poll
vitfil [10]

Answer:

d. Firm A will spend $4,000.

Explanation:

Since Firm B cost of Cleanup before it gets the the river is less than the cost of pollution permits, it will choose to clean up its pollution.

However, since Firm A cleanup cost per ton ($100) is greater than the cost of the pollution permit, it will choose to buy permits.

Maximum Allowable Number of Permits=40

Therefore, Firm A will clean up 10 Tons and dump 40 Tons of Waste.

Cost =(10 Tons *$100)+(40 Tons * $75)

=$(1000+3000)

=$4000.

Firm A will spend $4000.

4 0
3 years ago
Read 2 more answers
The gross requirements of a given component part are determined from ______________________.
il63 [147K]

Answer: The correct answer is "c) planned orders of the parent".

Explanation: The gross requirements of a given component part are determined from <u>planned orders of the parent</u>

Without the release of planned orders from immediate parents, the gross requirements of a given component part could not be determined.

5 0
3 years ago
A father and mother are planning a savings program to put their daughter through college. Their daughter is now 8 years old. She
Anna71 [15]

Answer:

$4,102.57

Explanation:

we must first calculate the future costs of college:

cost of college year 1 = $16,200 x (1 + 2%)¹⁰ = $19,747.71

cost of college year 2 = $19,747.71 x 1.02 = $20,142.66

cost of college year 3 = $20,142.66 x 1.02 = $20,545.51

cost of college year 4 = $20,545.51 x 1.02 = $20,956.42

in order to determine how much money does the family need to have before college starts we must discount the cost of college by 7.5%:

PV cost of college year 1 = $19,747.71

PV cost of college year 2 = 20,142.66 / 1.075 = $18,737.36

PV cost of college year 3 = $20,545.51  / 1.075² = $17,778.70

PV cost of college year 4 = $20,956.42  / 1.075³ = $16,869.09

total = $73,132.86

the future value of the grandmother's deposits:

$13,000 x (1 + 7.5%)¹⁴ = $35,781.77

$2,900 x (1 + 7.5%)¹² = $6,907.16

total = $42,688.93

that means that you will need to save $73,132.86 - $42,688.93 = $30,443.93 by the time your child turns 18

you will make 4 deposits and their future value will be:

deposit x 1.075¹⁰ = 2.0610D

deposit x 1.075⁹ = 1.9172D

deposit x 1.075⁸ = 1.7835D

deposit x 1.075⁷ = 1.6590D

total = 7.4207D

yearly deposit = $30,443.93 / 7.4207 = $4,102.57

4 0
2 years ago
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