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kolezko [41]
3 years ago
15

Shannon Corp. uses the aging method to account for bad debt expense. Shannon determines that a customer account of $10,000 shoul

d be written off as uncollectible. The write off of the account will include
Business
1 answer:
lozanna [386]3 years ago
6 0

Answer:

The write off of the account should include a debit to the allowance for uncollectible accounts, and a credit for bad debt expense:

Account                                             Debit              Credit

Bad Debt Expense                                                  $10,000

Allowance for Uncollectible

Accounts                                          $10,000

This is because under the aging method, when an account is actually written-off, it must be charged against the bad debt expense that was forecasted or anticipated earlier.

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A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It
vodka [1.7K]

Answer:

second year depreciation 13,072

Explanation:

190,000 - 10,000 = 180,000 ammount subject to depreciation

then we do:

180,000/75,000 = 0.688 rate per bolt

to get the depreciation for the second year:

19,000 x rate = 19,000 x 180,000/75,000 =  $13,072.00

doing it in a single step avoid rounding errors.

4 0
4 years ago
The name given to the fraction of deposits that a bank is legally required to hold in its vault, or as deposits at the fed, is _
r-ruslan [8.4K]
The answer to this question is the "REQUIRED RESERVE RATIO", it is the name given to the fraction of deposits that a bank is legally required to hold in its vault or as deposits at the fed. As per law and based on the checking account deposits, there is required reserve that a bank is legally authorized to hold.
7 0
3 years ago
Versaille company has cost of goods manufactured $325,000, beginning finished goods inventory $150,000, and ending finished good
belka [17]

Calculation of Cost of Goods Sold for Versaille company:


It is given that Versaille Company has the cost of goods manufactured $325,000, beginning finished goods inventory $150,000, and ending finished goods inventory $175,000. The Cost of Goods Sold can be calculated using the following formula;


Cost of Goods Sold = Cost of goods manufactured + beginning finished goods inventory - ending finished goods inventory

= 325,000+150,000-175,000

= $300,000


Hence, the cost of goods sold for Versaille company is <u>$300,000</u>




7 0
3 years ago
Identify the element or elements associated with these items.(a) Arises from peripheral or incidental transactions. select an el
lutik1710 [3]

Answer: .(a) Arises from peripheral or incidental transactions - corresponds to the definition of gains and losses.

(b) Obligation to transfer resources arising from a past transaction. - Corresponds to Liabilities.

(c) Increases ownership interest. - Investment by owner, Comprehensive Income.

(d) Declares and pays cash dividends to owners. - It is the Distributions to Owners.

(e) Increases in net assets in a period from nonowner sources. - Corresponds to Comprehensive Income.

(f) Items characterized by service potential or future economic benefit. - Is the definition of Assets.

(g) Equals increase in assets less liabilities during the year, after adding distributions to owners and subtracting investments by owners. - Comprehensive Income.

(h) Arises from income statement activities that constitute the entitys ongoing major or central operations. - Corresponds to the definition of Revenues and Expenses.

(i) Residual interest in the assets of the enterprise after deducting its liabilities. - Equity.

4 0
3 years ago
Question 9 Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per year. What will be yo
11111nata11111 [884]

Answer:

1103.22%

Explanation:

The value of the investment at the end of the year assuming  250  trading days per year can be computed the future value formula provided below:

FV=PV*(1+daily return)^n

PV=initial investment=$100

daily return=reinvestment rate=1%

n=number of trading days in a year=250

FV=$100*(1+1%)^250

FV=$ 1,203.22

Annual return=( 1,203.22/$100)-1

Annual return=1103.22%

5 0
3 years ago
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