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Veronika [31]
3 years ago
8

On June ​1, High Performance Cell Phones sold 19,000 of merchandise to Anthony Trucking Company on account. Anthony fell on hard

times and on July15 paid only $ 5,000 of the account receivable. After repeated attempts to​ collect, High Performance finally wrote off its accounts receivable from Anthony on September 5. Six months​ later, March ​5, High Performance received Anthony's check for $ 14,000 with a note apologizing for the late payment.
REQUIREMENTS

1. Journalize the transactions for High Performance Cell PhonesHigh Performance Cell Phones using the direct​ write-off method. Ignore Cost of Goods Sold.

2. What are some limitations that High Performance will encounter when using the direct​ write-off method?
Business
1 answer:
Naily [24]3 years ago
7 0

Answer and Explanation:

The Journal entries are shown below:-

1. Anthony Trucking Dr, $19,000

           To Sales A/c $19,000

(Being the sales made is recorded)

2. Bank Dr, $5,000

           To Anthony Trucking $5,000

(Being cash received is recorded)

3. Wrote off A/c Dr, $14,000

              To Anthony Trucking $14,000

(Being Account receivable write off the balance  is recorded)

4. Bank Dr, $14,000

            To Wrote off $14,000

(Being cash received is recorded)

2. High Performance 's direct write-off approach would face drawbacks because it breaches the matching principle. The matching theory involves be matching the spending of uncollectible accounts with the relevant revenues. Here uncollectible amount is treated as a bad debt expense. The written off amount is treated as uncollectible amount by the customer

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Coal Train Mines paid $435000 for the right to extract ore from a 225000​-ton mineral deposit. In addition to the purchase​ pric
Nutka1998 [239]

Answer:

Coal Train Mines

Journal Entries:

A) Record the purchase of the mineral rights.

Date            Accounts               Debit          Credit

         Mineral Rights             $435,000

         Cash Account                                   $435,000

To record the purchase of the mineral rights.

B) Record the payment of fees and other costs.

Journal

Date Accounts                        Debit             Credit

        Fees and other costs    $71,250

        Cash Account                                      $71,250

To record $115 filing fee, $2,000 license fee, and $69,135 for geological survey.

C) Record the depletion for first-year production.

Journal

Date       Accounts                   Debit         Credit

Dec 31    Depletion Expense  $101,250

               Accumulated Depletion             $101,250

To record the depletion charge for the year.

D) Record the sales of ore.

Journal

Date    Accounts             Debit        Credit

           Cash                    $

           Sales Revenue                     $

To record the sale of 45,000 tons of ore

Explanation:

a) Depletion is an accrual accounting technique.  It allocates the cost of extracting natural resources such as timber, minerals, and oil from the earth by using the percentage of extracted resources over the total resources.  Depletion is a non-cash expense, like depreciation and amortization, that lowers the cost value of an asset incrementally through scheduled charges to the income statement.  While depletion is for natural resources, depreciation is for property, plant, and equipment, while amortization is used for intangible assets.

b) The total cost to be capitalized = $506,250 ($435,000 + $71,250)

c) Depletion charge for the first year = $101,250 (45,000/225,000 * $506,250).  Depletion per unit is $2.25

d) The selling price was not indicated, so no sales value was calculated.

e) Ending Inventory = $6,750 (48,000 - 45,000 * $2.25)

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Equilibrium below and above minimum wage
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A project manager is overseeing a complex custom CSM solution that has rigorous quality standards and tight schedule constraints
nexus9112 [7]

The kind of power that the project manager should try to use in this type of situation is an: expert power.

A project manager refers to an individual who is saddled with the responsibility of planning, controlling, maintaining, and managing a group of people (team members) that are working under him or her, especially for the execution of a project.

In Project management, a project manager has different kinds of power and these include:

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Expert power is one of the most effective kinds of power and it is typically possessed by a project manager that is a professional (expert) in a particular subject, field or project.

Since the project manager is working in a weak-matrix organizational environment and has no power or budget to reward her team members,  she should use her expert power to oversee the complex custom CSM solution project.

In conclusion, the kind of power that the project manager should try to use in this type of situation is an expert power.

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Give an example of each of the manufacturing processes: Continuous Flow, Production Line, Batch, Job Shop and Fixed Position Lay
LenKa [72]

Answer:

Continuous Flow: Oil refining.  Chemicals.  Synthetic fibers.  Fertilizers.Pulp and paper. Blast furnace (iron) .Metal smelting. Power stations.

Batch Production :  Baked goods.  Clothing. Computer chips. Computer software.  Die- or mold-making. Electrical goods. Flat-pack furniture. Jet engine production.

Job shop  tool shop, a factory machining center, paint shops, a French restaurant, a commercial printing shop, and other manufacturers .

Fixed-position layout  construction (e.g., buildings, dams, and electric or nuclear power plants), shipbuilding, aircraft, aerospace, farming, drilling for oil, home repair, and automated car washes

Product Line  operations along the production line could include assembly, painting, drying, testing,

Explanation:

Continuous production is a flow production method used to manufacture, produce, or process materials without interruption.

Batch manufacturing is a style of manufacturing which compiles the different components of a product through step by step processes.  

A job shop is a type of manufacturing process structure where small batches of a variety of custom products are made.

In a fixed position layout, personnel, supplies, and equipment are brought to the site where the product will be assembled, rather than the product being moved through an assembly line or set of assembly stations

Product line. The item may move along some kind of conveyor, or be moved manually by staff or forklift.

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In placing a tire order with Goodyear, River City Industrial Supply finds that the truck tires it is ordering have increased $37
andre [41]

Answer:

Inelastic

Explanation:

Inelastic demand is when the buyer's demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.

Inelastic demand in economics is when people buy about the same amount, whether the price drops or rises. This situation happens with things that people must have, like gasoline and food. Drivers must purchase the same amount even when the price increases.

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