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notsponge [240]
3 years ago
8

Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to

90 Over 90 Accounts receivable $ 575,000 $ 397,000 $ 91,000 $ 37,000 $ 19,000 $ 31,000 Percent uncollectible 2 % 3 % 6 % 8 % 11 % a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,100 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,100 debit.
Business
1 answer:
11111nata11111 [884]3 years ago
4 0

Answer:

a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.

Dr Bad Debt Expense $ 23.000

Cr Allowance for Uncollectible Accounts $ 23.000

b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a.  

Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,100 credit  

Dr Bad Debt Expense $ 5.720

Cr Allowance for Uncollectible Accounts $ 5.720

c. Prepare the adjusting entry to record bad debts expense using the estimate from part a.  

Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,100 debit.  

Dr Bad Debt Expense $ 18.920

Cr Allowance for Uncollectible Accounts $ 18.920

Explanation:

Total Accounts Receivable $575,000 * 4% = $23,000

Dr Bad Debt Expense $ 23,000

Cr Allowance for Uncollectible Accounts $ 23,000

========================================================

$397,000  2%  $7,940  Past Due 0 days

$91,000    3%  $2,730  Past Due 1-30 days

$37,000    6%  $2,220  Past Due 31-60 days

$19,000    8%  $1,520  Past due 61-90 days

$31,000     11%  $3,410  Over 90 days

$575,000    $17,820  

If the unadjusted balance in the Allowance for Doubtful Accounts is a $12,100 credit then:

$17,820 - $12,100 = $5,720

Dr Bad Debt Expense $ 5,720

Cr Allowance for Uncollectible Accounts $ 5,720

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the total balance as calculated.

==============================================================

If the unadjusted balance in the Allowance for Doubtful Accounts is a $1,100 debit.

$17,820 + $1,100 = $18,920

Because the company already has a DEBIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that compensate the existing value and reflect the total balance as calculated.

Dr Bad Debt Expense $ 18,920

Cr Allowance for Uncollectible Accounts $ 18,920

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George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and w
vova2212 [387]

Answer:

Check the explanation

Explanation:

1040 form

Your first name : George Last Name: Large SSN:000-11-1111

Spouse’s first name :Marge Last Name: Large SSN:000-22-2222

Home address:

2000, Lake View Drive,

City, town or post office, state, and ZIP code:

Cleveland, OH,49001

Filing Status:

2) Married filing jointly

Income :

7)Salary:::::::::::::::::::::::::::::::::::::::::::$80,000

12 Business income:::::::::::::::::::::::::$4,375(SCHEDULE C)

22) Gross income=$84,375

27 Deductible part of self-employment tax.=$669.37

($4,375 * 15.3%/100=$669.37( $117,000 or less, multiply line 4 by 15.3% as per irs for 2014)

36 Add lines 23 through 35 = $669.37

37 Subtract line 36 from line 22. =$84,375 - $669.37=$83,705.63

38) Amount from line 37 (adjusted gross income) =$83,705.63

40 Itemized deductions:::::::::::::::::::::::::::::::::::::::::$18,870.89(see SCHEDULE A)

41 Subtract line 40 from line 38 :::::::::::::::::::::::::$64,923.98($83,793.12 - $18,870.89=$64,922.23)

42) Exemptions:::::::::::::::::NIL

43)Taxable income Subtract line 42 from line 41::::::::::::::::$64,922.23

55) Taxable income(no other credits and Tax)::::::::::::::::::::::$64,923.98

other taxes :

56 Self-employment tax:::::::::::::::::::::: $669.37

61) total tax =$669.37

Payments

62 Federal income tax withheld:$8,500

72 ) total payments= $8,500

_______________________________________________________

SCHEDULE A (Form 1040) Itemized Deductions

Taxes paid

6 Real estate taxes :::::::::::::::::::::::::::::$2,500

9 Add lines 5 through 8::::::::::::::::::::::::$2,500

10 Home mortgage interest :::::::::::::::::$3,375 *75/100=$3,375)

15 Add lines 10 through 14 .:::::::::::::::::$3,375

16 Gifts to Charity::::::::::::::::::::::::::::::::$3,500

19 Add lines 16 through 18 :::::::::::::::::::$3,500

21 Unreimbursed employee expenses:::$11,170( see the explanation 2106 form)

24 Add lines 21 through 23::::::::::::::::::$11,170

25 Enter amount from Form 1040, line 38 :::::::$83,793.12

26 Multiply line 25 by 2%:::::::::::::::::::::::::::::::$1 674.11

($83,705.63* 2/100=1 674.11)

27 Subtract line 26 from line 24=$9,494.14

($11,170 - 1 674.11=$9,495.89)

29)Total Itemized Deduction

29 Add the amounts in the far right column for lines 6 through 28. Also, enter this amount on Form 1040, line 40=$18,870.89

($2,500 +$3,375+$3,500+$9,495.89=$18,870.89

_______________________________________________________________________

SCHEDULE C (Form 1040)

Name of proprietor:Marge Large SSN:000-22-2222

A) Principal business: Repair Rubber Toy Boats:::::::::::::Business Code::::::::811490

Part 1

1) Gross receipts or sales::::::::::::::::::::::::::::$15,000

7 Gross income:::::::::::::::::::::::::::::::::::::::::::$15,000

Part II

Expenses:

11 Contract labor=$3,500

16 Interest: a Mortgage=$1,125($4,500 *25/100=$1,125)

22 Supplies =$5,000

25 Utilities=$500($2,000 * 25/100=$500)

27a)Other expenses= $500(phone )

28) Total expenses : Add lines 8 through 27a:$10,625

29 Tentative profit Subtract line 28 from line 7 =$4,375

_________________________________________________

Form 2106

Employee Business Expenses

Part 1

Expense

1) Vehicle Expense :$ 10080 (0.56 cents * 18,000 miles)

3 Travel expense::::::::::::::::::::::::::$515($200 + $255 + $60)

(Airfare =$200

Loding = $85 per day * 3days= $255

Taxicabs=$20 per day *3days=$60)

5)Meals and entertainment expenses=$50 *50/100 per day *3 days=$75 +$5,500=$5,575

(Customer means and Entertainment=$1500+$4,000=$5,500)

6) total Expense =$16,170

7)reimbursements received =$5,000

8)Subtract line 7 from line 6=$16,170 - $5,000=$11,170

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2 years ago
Wilfred Nadeau owns 300 shares of Consolidated Glue. The​ company's board of directors recently declared a cash dividend of 45 c
dedylja [7]

Answer:

<u>a. Zero dividend.</u>

<u>b. 3.5 new shares</u>;

<em>texes will be paid.</em>

<u>Explanation:</u>

a. March 20 is a date earlier than when the dividends are too be paid on April 18, and as such Wilfred Nadeau<em> will not</em> receive any dividend if he sells his stocks since he no longer has ownership of them.

b. 45 cents dividends per 300 stocks of Wilfred is $135 (reinvestment dividend plan).

With a discount of 3.4% at $39.8 (3.4%*39.8) current price per stock makes the total cost per stock after discount= $38.4.

Dividing the reinvestment dividend plan over the discounted price (135/38.4) = 3.5 new shares, According to the requirements of law the investor must still pay tax annually on his or her dividend income, whether it is received as cash or reinvested.

8 0
3 years ago
When a home is hit with a assessment to pay for an improvement in the neighborhood such as sidewalk repair, or paving a road, or
enyata [817]

Answer:

Brokers must disclose the information regarding the improvement and the fact that the property's taxes will increase the next year. Neighborhood improvements are paid by  Special Assessment Districts adding taxes to existing properties or increasing sales taxes. Buyers need to know what property taxes they are expected to pay, and in this case, the current property taxes must be adjusted to show the real amount that will  be paid in the future.

This isn't something necessarily bad because you are going to pay higher taxes, but your neighborhood is also improving.

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3 years ago
Which of these sentences is correctly written and punctuated? Keeping his active mind challenging Roosevelt improved his stamp c
Vladimir79 [104]
The seconds one is the correct answer
8 0
2 years ago
Net income was $503,000 in 2020, $473,000 in 2021, and $521,000 in 2022. What is the percentage of change from (a) 2020 to 2021,
Butoxors [25]

Answer and Explanation:

The computation of the percentage of change is as follows;

a. For 2020 to 2021

= (Net income in 2021 - net income is 2020) ÷ (net income in 2020)

= ($473,000 - $503,000) ÷ ($503,000)

= -5.96% decrease

b .For 2021 to 2022

= (Net income in 2022 - net income is 2021) ÷ (net income in 2021)

= ($521,000 - $473,000) ÷ ($473,000)

= 10.15% increase

In this way it is calculated

6 0
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