Answer:
$28,000
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 Past experience indicates that the allowance should be 10% of the balance in receivables
Allowance = 10% * $150,000
= $15,000
Since during 2018, $29,000 of uncollectible accounts receivable were written off
Balance in allowance account before adjustment
= $29,000 - $16,000
= $13,000 (Debit)
Required adjustment for Doubtful Accounts at December 31, 2018
= $13,000 + $15,000
= $28,000
Answer:
Consumption is a key component in the calculation of GDP and refers to how much money out of disposable income is spent by households on goods (both durable and non-durable) and services.
Disposable income is how much money households have after taxes. Their consumption and spending come from here.
Whatever is not spent is saved. Savings are therefore calculated as;
Savings = Disposable income - Consumption
Savings for the above are therefore,
$20,000 - $22,000 = -$2,000
21,000 - 22,500 = -$1,500
22,000 - 23,000 = -$1,000
23,000 - 23,500 = -$500
24,000 - 24,000 = $0
25,000 - 24,500 = $500
26,000 - 25,000 = $1,000
27,000 - 25,500 = $1,500
28,000 - 26,000 = $2,000
Answer:
Explanation:
The journal entries are shown below:
On Jan 1 - Cash A/c Dr $5,000,000
To Bonds Payable A/c $5,000,000,
(Being bond is issued)
On June 30 - Interest expense A/c Dr $150,000
To Cash A/c $150,000
(Being interest paid for cash)
On December 31, Bonds Payable A/c Dr $5,000,000
To Cash A/c $5,000,000
(Being payment of principal is recorded on the maturity date)
Answer:
The correct answer to the following question is Unfavorable direct material cost variance .
Explanation:
Unfavorable variance can be defined as an accounting term which describes situations where the actual cost that a company would bear is more than the standard cost. This will alert a management that there will be fall in the expected profit of the company. In the given question , same situation will take place if the production manager decides to buy high grade materials which will cause more cost and thus will lead to decrease in profit.
Answer:
Net Realizablel Value of Account receivable = $142,850
Explanation:
Particulars Amount
Total Accounts Receivable $164,200
- Pre-adjusted Uncollectable Account balance $7,250
- Current Year Uncollectable Amount <u>$14,100 </u> ($235000*6%)
Net Realizable Value <u>$142,850</u>
