Answer:
The adjustment Brinkley records for Allowance for Uncollectible Accounts using the percentage-of-credit-sales method:
Debit Bad debts expense $6,500
Credit Allowance for Uncollectible Accounts $6,500
Explanation:
Brinkley Incorporated’ uses the percentage-of-credit-sales method - application a flat percentage to the total amount of net credit sales for the period to estimate uncollectible.
Estimated uncollectible = 5% x $130,000 = $6,500
The company records an Allowance for Uncollectible Accounts for $6,500 while simultaneously reporting $6,500 in bad debts expense. The adjustment entry:
Debit Bad debts expense $6,500
Credit Allowance for Uncollectible Accounts $6,500
The balance in the Allowance for Uncollectible Accounts after adjustment is $6,500 + $3,500 = $10,000
Answer: Recognition of $20,000 gain in income.
Explanation:
The creditor reduced the mortgage that Ralph would have to pay by $20,000 because Ralph was struggling to keep up payments. When debt is reduced, the reduction is usually taxable because it is treated as income.
The reason for the reduction of debt is not a reason for a debt reduction being exempt from taxation so the $20,000 will have to be treated as a gain and will be reported as such for Ralph's gross income.
Answer:
A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people. – White House Office of Consumer Affairs. Happy customers who get their issue resolved tell about 4-6 people about their experience.
Explanation:
correct me if I am wrong
For the quarter ending December 2021, Woolworths Group's tax rate was 27.15%. See other financial metrics below.
<h3>What is the significance of tax rate?</h3>
Taxation not only pays for public goods and services; it also plays an important role in the social compact that exists between citizens (corporate and individual) and the economy.
The manner in which taxes are collected and spent may define a government's very legitimacy.
When very big corporations such as Woolworth are involved, they are also evaluated on their commitment to tax payment.
<h3>What is the Asset Value of Woolworth Holdings as at December 2021?</h3>
The Asset Value of Woolworth Holdings as at December 2021 was valued at about 59 Billion Dollars. In the same year, it's net income was valued at about 4.2 Billion Dollars.
Her EBDITDA - Earnings before interest, taxes, depreciation, and amortization was computed to have grown by 11.59 Billion dollars.
Hence, this tells us that after satisfying it's corporate fiscal responsibility (tax payment), Woolworth remained profitable. To the tune of 4.2 billion dollars.
Learn more about Financial metrics:
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Answer:
Dr Accounts receivable $77,000
Cr Sales $77,000
Payment within discount period:
Dr Cash $75,460
Dr Discount allowed $1540
Cr Accounts receivable $77,000
When payment is not made within discount period, the necessary entries would be:
Dr Accounts receivable $77,000
Cr Sales $77,000
Payment within discount period:
Dr Cash $77,000
Cr Accounts receivable $77,000
Explanation:
Upon sales on July 15 ,2021 the total sales value of $77,000 ($55*1400) is credited sales account and debited to account receivables.
Collection of cash on July 23 ,2021 implies that the payment was collected within the discount period,hence the amount received is selling price less 2% discount, and as a result cash collected is $75460 ($77000*98%)
When payment is made on August 15, no discount is given has discount period has lapsed.
