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Nuetrik [128]
3 years ago
8

At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $823,000. Chan records it

s Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $412 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions.
Business
1 answer:
Rudiy273 years ago
5 0

Explanation:

The journal entries are as follows

On December 31

Bad debt expense Dr  $4,115        ($823,000 × 0.50%)

       To Allowance for doubtful debts  $4,115

(Being the bad debt expense is recorded)      

On Feb 01

Allowance for doubtful debts Dr $412

      To Account receivable $412

(Being the uncollectible amount is recorded)

On June 5

Account receivable $412

          To Allowance for doubtful debts Dr $412

(Being the  uncollectible amount is recorded)

On June 5

Cash Dr $412

   To Account receivable $412

(Being the cash received is recorded)

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You bought four put options (each on 100 shares) on EZ stock with an exercise price of $35 per share and an option price of $1.3
Stella [2.4K]

Answer:

-$ 540

Explanation:

Put Option - provides right to sell share at exercise price on expiry.

As it is an Right not Obligation, Thus, buyer will exercise the right only if he is gaining at expiry and he will gain only if exercise price is higher than spot price at expiry

In this case Exercise Price ($ 35) is lower than the spot price ( $ 36.25) at expiry. Thus he will not execrise the option.

He will lose all what he spend in buying option that is $ 1.35 per share

Thus,

Net profit or loss on this investment = 4 Options * 100 Shares each * Loss of $ 1.35 per Share

Net profit or loss on this investment = 4 * 100 * (-1.35)

Net profit or loss on this investment = -$ 540

4 0
3 years ago
_____ is the part of the total sales held by one seller. For example, a monopolist holds 100 percent of total sales.
Firlakuza [10]
Market share is the part of the total sales held by one seller.

For example, a monopolist holds 100 percent of total sales. The 100 percent refers to the market share. In a monopoly, only one business has the good or service that is being offered in the market. Thus, consumers have no other choice but to purchase said good or service from the monopolist.
7 0
3 years ago
What is Advertising , according to the American Marketing Association​
Alexus [3.1K]

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5 0
2 years ago
Prepare traditional and contribution margin income statements (Learning Objective 6) The Willowick Ice Cream Shoppe sold 8,700 s
Leto [7]

Answer:

Sales Revenues 26100

COGS              <u>    5655</u>

gross profit        20445

rent expense                 1600

depreciation expense   200

operating expense <u>2600</u>

net income                16045

   

Sales Revenues          26100

Variable Cost               <u>     6305 </u>

Contribution margin        19795

rent expense                     1600

depreciation expense       200

fixed operating expense<u>   1950  </u>

net income                   16045

Explanation:

traditional:

COGS

$12 tub / 30 ice cream cones = $0.40

+ 0.25 ice cream cones

total per unit 0.65

8,700 x 0.65 = 5655

Gross profit: sales revenue less COGS

then, we subtract the rent expense, depreicaiton expense and operatign expenses to get net income.

contribution the variable cost will be subtracted from the sales revenues

that will include the 75% of the operating expenses

The difference between sales revenue and variable cost is called contribution margin.

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3 years ago
The financial ratio that measures the accounting profit per dollar of book equity is referred to as the:
WINSTONCH [101]

Answer:

Return on equity.

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

The financial ratio that measures the accounting profit per dollar of book equity is referred to as the return on equity. It is calculated by dividing the net income with the shareholder's equity at a specific period of time

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3 years ago
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