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Tems11 [23]
3 years ago
14

The Miller Company earned $133,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivabl

e and allowance accounts. During Year 2, Miller collected $87,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account. The net realizable value of Miller's receivables at the end of Year 2 was:
Business
1 answer:
horsena [70]3 years ago
4 0

Answer:

The net realizable value of Miller's receivables at the end of Year 2 was:  $42,010

Explanation:

Open a Trade Receivable Account as follows :

Debits :

Revenue $133,000

Totals      $133,000

Credits:

Cash        $87,000

Balance   $46,000

Totals      $133,000

Note that Allowance for Doubtful debts is estimated at 3% of the Company`s Sales on Account

Allowance for Doubtful debts = $133,000 × 3%

                                                 = $ 3, 990

<u>Net realizable value of Miller's receivables</u>

Trade Receivable Balance                $46,000

Less Allowance for Doubtful Debts    $3,990

Trade Receivables                              $42,010

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What does reconciling an account mean?
Gala2k [10]

Reconciliation is the accounting process of comparing two data sets to ensure that the numbers are correct and consistent.

Reconciling bank statements simply means comparing your internal financial records with those provided by your bank. This process is critical to being able to identify anomalous transactions caused by fraud or accounting errors.

All businesses are required to reconcile their banks at least once a month. It is convenient to reconcile the books immediately after the end of the month, as at the end of the month your bank will send you a monthly statement that you can use as the basis for your reconciliation. Balance sheet reconciliation is the process of closing the balances of all individual companies.

Learn more about Reconciliation here:- brainly.com/question/15525383

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8 0
1 year ago
Compute the payback for each of these two seperate investments:
fredd [130]

Answer:

a. 2.23

b. 3.21

Explanation:

a. Answer to Part A

Payback Period = Investment / Annual Cash Inflow

= 250000 / 112115

= 2.23

Answer to Part B

Payback Period = Investment / Annual Cash Inflow

= 200000 / 62375

= 3.21

Working Note

<em>Particulars                Case A     Case B </em>

After Tax Income  72115         39000

Add: Depreciation  40000       23375

Cash Inflow             11,2115         62375

<em>Particulars              Case A           Case B </em>

Cost of Machine     250000        200000

Less: salvage Value  10000         13000

Depreciable Value   240000        187000

Life of the Asset           6                  8

Annual Depreciation 40000         23375

8 0
3 years ago
Accounting records for NIC Enterprises (NICE) for September show the following (each entry is the total of the actual entries fo
Lana71 [14]

Answer: $263,000

Explanation:

Based on the information given, the finished goods inventory on September 30 will be calculated as:

= Begining inventory + Transfers in - Transfers out.

= $203000 + $1,770,000 - $1,710,000

= $263,000

Therefore, finished goods inventory on September 30 was $263,000

4 0
3 years ago
A waiter believes the distribution of his tips has a model that is slightly skewed to the left​, with a mean of ​$8.90 and a sta
postnew [5]

Answer:

A. 0.3204    B. $14.669

Explanation:

Mean = 8.9      SD = 4.5

Required probability = P (X >/= 550/50)

P(X>/=11) = 1 - P[(X - mean/SD) < (11 - mean)/SD]

              = 1 - P(Z < (11-8.9)/4.5)

P(X>/=11) = 1 - P(Z < 0.4666667)

Using Excel NORMDIST(0.4666667,0,1,1)

P(X>/=11) = 1 - 0.6796 = 0.3204

The probability that she will earn at least $550 = 0.3204

b. P ( X  >  x )  =  0.10

1  −  P ( X  −  mean)/SD  ≤  (x  −  mean) /SD = 0.10

P ( Z  ≤  z )  =  0.90

Where,

z  =  (x  −  mean )/SD

Excel function for the value of z:

=NORMSINV(0.9)

=1.282

Hence (x - mean)/SD = 1.282

= (x - 8.9)/4.5 = 1.282

x = (1.282*4.5) + 8.9

x = 14.669

He earns $14.669 on the best 10% of such weekends.

3 0
3 years ago
Donata Company purchased equipment for $30,000 in December 20x1. The equipment is expected to generate $10,000 per year of addit
attashe74 [19]

Answer:

Total after-tax cash flow= $6000

Explanation:

Giving the following information:

Equipment value= $30,000 in December 20x1.

Income= $10,000 p

Cost= $2,000 per year.

Depreciation= $3,000.

t=0,40

Cash flow has the following structure:

Income (+)

Cost (-)

Depreciation (-)

=EBIT

TAX (-)

Depreciation (+)

Total

Income= 10000

Costs= -2000

Depreciation= -3000

EBIT= 5000

Tax= -2000

Depreciation= 3000

Total= 6000

5 0
3 years ago
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