Answer:
Wei Company
Journal Entry:
Debit Allowance for Doubtful Accounts $7,800
Credit Accounts Receivable $7,800
To write-off accounts determined to be uncollectible.
Explanation:
a) Data and Calculations:
Allowance for Doubtful Accounts (Balance) = $35,000
Uncollectible accounts:
Oakley Co. $1,400
Brookes Co. $6,400
Total = $7,800
b) The amount of $7,800 considered to be uncollectible is written off against the Accounts Receivable. This reduces the Accounts Receivable while correspondingly increasing the Allowance for Doubtful Accounts.
Answer:
$1.90 per share
Explanation:
The computation of the diluted earning per share is shown below:
Diluted earning per share = Net income ÷ Weighted number of outstanding shares
where,
Net income is $680,000
And, the Weighted number of outstanding shares is
= 240,000 + 24,000 × 5
= 240,000 + 120,000
= 360,000 shares
So, the diluted EPS is
= $680,000 ÷ 360,000 shares
= $1.90 per share
We simply applied the above formula
Answer:
A. True
Explanation:
Account Title Debit Credit
Cash 6500
Investment in CDW Corp. 6500
Because the people selling it needs to make profit.
Answer:
$648,000
Explanation:
Given that;
Net income = $360,000
Interest expense = $72,000
Times interest earned = 10
Net Income + Interest expense + Tax expense ÷ Interest expense = Times interest earned.
($360,000 + $72,000 + Tax expense) /$72,000 = 10
Tax expense = $288,000
Therefore;
Sunderland's income before taxes for the year
= Net income + Tax expense
= $360,000 + $288,000
= $648,000
