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AlekseyPX
3 years ago
6

During its first year of operations, Ivanhoe Company had credit sales of $2,781,600, of which $368,300 remained uncollected at y

ear-end. The credit manager estimates that $19,340 of these receivables will become uncollectible.
Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.)
Account Titles and Explanation | Debit | Credit
Business
1 answer:
Sergeeva-Olga [200]3 years ago
7 0

Answer:

Explanation:

The journal entry to record the bad debt expense is shown below:

Bad debt expense A/c Dr  $19,340

      To Allowance for doubtful debts $19,340

(Being estimated uncollectible amount is recorded)

For recording this journal entry, we debited the bad debt expense account and credited the  Allowance for doubtful debts so that the amount is correctly recorded in the correct item.

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Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges
yuradex [85]

Answer:

Koski Inc.

Quick Ratio:

Quick Ratio = (Current Assets - Inventory) divided by Current Liabilities

Quick Ratio = $(23,595 - 12,480) / $(17,160 -5,460)

Quick Ratio = 11,115 / 11,700 = 0.95

Explanation:

The quick ratio is a financial metric that shows the short-term liquidity position of a company.  It measures the company's ability to settle its short-term obligations using its most liquid current assets.  The most liquid assets are cash and near cash current assets.

Inventory is always removed in calculating the most liquid current assets.  Inventory will take some time before it can be converted to cash or near cash, given the cash conversion cycle.

The quick ratio is also called the acid-test ratio.  It is also considered as more conservative than the current ratio which measures the coverage of current liabilities by all current assets, including inventory.

In our workings, we eliminated inventory from current assets.  We also eliminated notes payable which would be rolled over the next year.

4 0
2 years ago
Internal users of financial information: Multiple Choice Are not directly involved in operating a company. Are those individuals
Fudgin [204]

Internal users of financial information Are those individuals involved in managing and operating the company.

Answer: Option (B) is correct.

Explanation:

Internal users are people inside the organization. Internal users of financial information are those who are directly involved in managing and operating the organization. They make use of the information to improve the efficiency and effectiveness of an organization.

Internal users consist of all managers like purchase managers, human resource managers, marketing managers, service managers, etc. it consists of employees and the owner of a concern. Internal users take various important decisions based on financial information.

3 0
3 years ago
During the 1990s, several airlines were on the brink of bankruptcy. These same airlines were giving away millions of dollars in
lara [203]

Answer:

Assuming that the elimination of frequent-flyer programs would have enabled the airlines to earn higher profits and remain in business, then it would be a purely good idea for the airlines to eliminate their frequent-flyer programs.

The big question is, how much did the frequent-flyer programs cost the airlines?  Would the cost-savings be sufficient to eliminate their bankruptcies?  It is a known-fact that the airlines that create such programs always recover the program costs by charging higher fares.

Explanation:

The issue of airlines going bankruptcy does not seem to stem from customer-loyalty programs like the frequent-flyer programs.  The root cause lies in operational and other costs that airline managements have not been able to control.

4 0
2 years ago
The main output of the ______ process is the stakeholder register.
liq [111]
Hello!
.
The answer to your questions is "identifying stakeholders".
.
The main output of the identifying stakeholders process is the stakeholder register.
:)
7 0
2 years ago
A bond has a Duration (not Modified) of 4.2 years and is priced at 99.50. Its yield is 3%. How much will its price change if the
saw5 [17]

Answer:

1.22%

Explanation:

The modified duration of the bond gives an indication of change in price due to a 1% change in the yield to maturity,hence, the bond modified duration is computed using the formula below:

modified duration=Macaulay Duration/(1+YTM)

Macaulay Duration=4.2

YTM(initial)=3%

modified duration=4.2/(1+3%)= 4.08  

That for 1% change in yield to maturity price would change 4.08%

0.3% change in yield(3.3%-3%)= 4.08%*0.3%=1.22%

4 0
2 years ago
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