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Karo-lina-s [1.5K]
3 years ago
10

Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 4.5% charge on sales for using its

card. On May 26, Brinker had $5,000 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit
A)On July 9, Mifflin Company receives a $8,900, 90-day, 12% note from customer Payton Summers as payment on account. Compute the amount due at maturity for the note. (Use 360 days a year.)
B)On November 1, Orpheum Company accepted a $11,300, 90-day, 12% note from a customer to settle an account. What entry should be made on the November 1 to record the note acceptance
C)Jervis sells $2,700 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 4% factoring fee. What entry should Jervis make to record the transaction
D) Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $142,500, allowance for doubtful accounts of $1,045 (credit) and sales of $1,115,000. If uncollectible accounts are estimated to be 8% of accounts receivable, what is the amount of the bad debts expense adjusting entry?
E) On February 1, a customer's account balance of $4,200 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method
F) On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $98,100; Allowance for Doubtful Accounts, credit balance of $1,051. What amount should be debited to Bad Debts Expense, assuming 4% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible
Business
1 answer:
Natali [406]3 years ago
4 0

Answer:

Dr Cash $4,775

Dr Credit Card Expense 225

Cr Credit Sales 5,000

Explanation:

5,000 x 4.5% = $225 credit card expense

5,000 - 225 = $4,775 debit to cash

Dr Cash $4,775

Dr Credit Card Expense 225

Cr Credit Sales 5,000

A) $8,900 * (90/360) * (12/100) = $267

= $8,900 + $267

= $9,167

B) Dr Note Receivable $11,300;

Cr Accounts Receivable $11,300.

C) Dr cash $2,592;

    Dr factoring fee expense $108;

    Cr Accounts receivable $2,700

D)  $142,500 x 8/100 = 11,400.00

= $11,400.00 + $1,045

= $12,445.00

E) Dr Allowance for doubtful debt - $4,200

   Cr Account Receivable - $4,200

F)  $98,100 x 4/100 = $3,924.00

 = $3,924.00 - $1,051

= $2,873.00

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What is price discrimination and how do movie theaters and restaurants practice price discrimination?​
marishachu [46]
Price discrimination is the action of selling the same product at different prices to different buyers, in order to maximize sales and profits. Movie theaters practice it by giving discounts on certain night. Example: senior citizens discount. Restaurants practice price discrimination by menu pricing.
7 0
3 years ago
On December 31, 2018, Gardner Company holds debt securities classified as HTM with a face amount of $100,000 and a carrying valu
Sunny_sXe [5.5K]

Answer:

$2,850

Explanation:

Given the following :

Face value of security = $100,000

Carrying value = $95,000

Effective interest rate = 6%

Interest paid semianually = $2500

The effective interest revenue recognized for the six months ended December 31, 2018 is:

IF effective interest rate = 6%

Semiannual interest = 6% / 2 = 3%

Therefore effective interest revenue for six months will be the product of the carrying value and the interest rate within the six months period :

3% = 0.03

0.03 * $95,000 = $2,850

3 0
3 years ago
The allowance for doubtful accounts is reported as a(n) __________ on the balance sheet.
Firlakuza [10]
B. The allowance for doubtful accounts is reported as a deduction from accounts receivable on the balance sheet
6 0
2 years ago
Make sure that your changes do not ___ your clients.
WARRIOR [948]
Affect your clients.
5 0
3 years ago
Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, a short-term note paya
masya89 [10]

Answer:

1. January 10:

Inventory account increases by $25,500

Account payable increases by $25,500;

Total asset will increase by $25,500 and total liabilities will increases by $25,500. Equity remains the same.

March 1:

Cash account increases by $55,000.

Promissory note payable increases $55,000

Total asset will increase by $55,000 and total liabilities will increases by $55,000. Equity remains the same.

2.

The amount of cash will be paid at maturity date (Sep 1) of the note is $56,787.5

3.

Jan 10: debt-to-assets ratio = 0.70, thus increase in Debt to asset ratio comparing to the ratio 0.69 at the beginning

March 1: debt-to-assets ratio = 0.72, thus increase in Debt to asset ratio comparing to the ratio 0.69 at the beginning

Explanation:

- Working note for 2: Repayment will include Face value + Interest rate expenses incurred = 55,000 + 55,000 * 6.5% *6/12 = $56,787.5

- Working note for 3:

Jan 10: Debt-to-asset ratio = (450,000 + 25,500) / (650,000 + 25,500) = 0.70

Mar 1: Debt-to-asset ratio =(450,000 + 55,000) / (650,000 + 55,000) = 0.72

6 0
3 years ago
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