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marin [14]
3 years ago
9

Solstice Company determines on October 1 that it cannot collect $50,000 of its accounts receivable from its customer P. Moore. I

t uses the direct write-off method to record this loss as of October 1. On October 30, P. Moore unexpectedly paid his account in full to Solstice Company. Record Solsticeâs entry(ies) to reflect recovery of this bad debt.
Business
1 answer:
Anton [14]3 years ago
8 0

Answer:

Please see explanation below.

Explanation:

Oct 1

Dr Accounts receivable $50,000

Cr Bad debts expense $50,000

(Accounts receivable is an asset and are debited when it increases, Expenses are credited when they increase)

Oct 30

Dr Cash $50,000

Cr Accounts receivable $50,000

(Cash is debited when it increases because it is an asset while Accounts receivable is also an asset hence credited when it decreases.)

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In 2005, a loan broker and appraiser working for a subsidiary of Bank of America appraised the Cassies home at a fair market val
Tomtit [17]

Answer:

C. The Cassies will win.

Explanation:

In the given case, the cassies would win as this was appraisal fraud that done by the company employee who is a Bank of america Subsidiary. Here the loan broker and the appraiser increase the fair market value of cassies home i.e. $620,000 but it would be lesser that is $250,000. So this inflate the value in order to make the payment of high rate with related to the mortgage

3 0
3 years ago
Karl Metzger plans to invest $5,000 in a partnership with his brother to produce and sell handcrafted violins, zithers, and othe
Svet_ta [14]

Answer:

A silent partner

Explanation:

A silent partner is a partner whose liability is limited to the amount invested in the project. Also, a limited partner hardly takes part in the day to day running of the business.

I hope my answer helps you

8 0
3 years ago
You are the only seller of eggs in town, and the price-elasticity coefficient for eggs is known to be 2. If you want to increase
lukranit [14]

Answer:

the seller must lower the price by 12.5%

5 0
3 years ago
Read 2 more answers
Check My Work (1 remaining) Fraud detection is an important element of minimizing losses from fraud, and it is important that fr
Alexandra [31]
<h2>True. The early detection of fraud avoids greater loss.</h2>

Explanation:

The early detection of fraud needs to be done for the following reason:

  • Fraud will continue if not found earlier and thus leads to greater loss
  • The fraud team is not widen before huge loss happens
  • Easy to recover
  • Possibility of finding the loop holes even if it is from external sources
  • Detects weakness in the internal control and eradicate and make the system secure
  • Avoid huge loss and threats
  • To gain profits
  • To keep up the name of the organization
  • To bring business and to retain customers

4 0
3 years ago
On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati
BlackZzzverrR [31]

Answer:

The answer is $243,000

Explanation:

The inventory on July 8 immediately prior to the fire is the CLOSING INVENTORY.

To find this closing inventory, we need to find the gross profit first and then cost of sales.

To find gross profit:

Gross profit margin=gross profit ÷sales.

Gross profit margin is 20% or 0.2

Sales is $690,000

Therefore, gross profit is:

0.2 x $690,000

=$138,000

To find cost of sales:

Gross profit = sales - cost of sales.

Gross profit is $138,000

Sales is $690,000

Therefore, cost of sales is

$690,000 - $138,000

=$552,000.

And finally to get closing inventory:

Cost of sales = opening inventory + purchases - closing inventory.

Cost of sales = $552,000

Opening inventory = $140,000

Purchases = $655,000

Closing inventory = $140,000+$655,000-$552,000

=$243,000.

6 0
3 years ago
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