Answer:
$114,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Given that it estimates its bad debts to be 3.5% of credit sales, estimated bad debt
= 3.5% * $3,200,000
= $112,000
If the Allowance for Uncollectible Accounts has a $2,000 debit balance and the estimated allowance balance should be $112,000, allowance for doubtful debt required
= $112000 + $2000
= $114,000
To account for this,
debit bad debit expense $114,000
credit allowance for doubtful $114,000
Answer:
transfer price 3.31
Explanation:
the minimun transfer price should be equal to the marginal cost:
In this case: variable manufacturing cost + shipping cost.
variable cost 3.1
shipping cos 0.21
marginal price 3.31 = cost of produce an additional unit = transfer price
there is no additional fixed cost so this should be the transfer price.
Answer: See explanation
Explanation:
1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.
The first year's net earnings under the cash basis of accounting will be:
Service revenue = $23400
Less: Expenses = $14310
Net income = $9090
The first year's net earnings under the accrual basis of accounting will be:
Service revenue = $29500
Less: Expenses = $15500
Net income = $14000
2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
It should be noted that the accrual basis of accounting gives decision makers more useful information. This is due to the fact that the decision makers will probably want to know the revenue and the expenses that were incurred for a particular period and every other necessary details.
Answer:The needed funds/money will be transferred automatically from their savings account.
Explanation: A bad check is a that is whose payment is taking from an account not existing or an account with less amount considering the amount required to pay the check. Since Jack and Jill have an automatic funds transfer agreement with their bank, generally funds will be transferred automatically from their savings account with the bank.
It is better Jack and Jill start to know their account balance and take adequate steps to tract it in order to avoid Issuing BAD CHECK.