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IRISSAK [1]
3 years ago
10

At December 31, 2019, Blanda Company had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2020, Blanda wro

te off accounts totaling $11,000. One of those accounts ($1,800) was later collected. At December 31, 2020, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $19,000.Instructions: Prepare journal entries to record the 2020 transactions of Blanda Company.
Business
1 answer:
Alex73 [517]3 years ago
7 0

Answer:

journal entries

Write-off

Debit Bad Debts expense $11,000 Credit Accounts receivable $11,000

Recovery

Debit Bank $1,800 Credit Bad Debt Recovered income $1,800

Allowance for Doubtful debt Adjustment

Debit Allowance for doubtful debt Adjustment $4,000 Credit Allowance for doubtful debt $4,000

Explanation:

Write-off

The write-off creates an expense (bad debt) and and decreases an asset ( Accounts receivable)

Recovery

Since the amount has been written off as bad, when it is recovered it is no longer recognized as a payment on accounts receivable but an income the entity thought was lost.

Allowance for doubtful debt adjustment

The differences in the opening balance and closing balance either creates an expense or an income adjustment. These estimates are on net Accounts receivables ( after bad debts) are a negative assets.

19000 - 15000 = 4000(increase) adjustment and is an expense.

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If the keyword an advertiser is bidding on is used in the ad and on the landing page, then the advertiser will receive a higher
cricket20 [7]

Answer:

If the keyword an advertiser is bidding on is used in the ad and on the landing page, then the advertiser will receive a higher Quality Score for

ad relevance.

Explanation:

Ad relevance is a component that gives an advertiser higher quality score.  It is an indication that the keyword is optimized to meet the customer's search query.  It shows how closely the ad matches the customer's search because a correlation exists between the keyword, the ad, and the post-click landing page.  It is paramount to achieve ad relevance in any pay-per-click advertising (PPC), otherwise called search engine marketing (SEM) or search advertising, to justify the ad costs.

8 0
2 years ago
g An increase in demand is represented by a a. movement downward and to the right along a demand curve. b. movement upward and t
Lana71 [14]

Answer: c. rightward shift of a demand curve.

Explanation:

When there is movement along the demand curve, this is due to a change in the price of the good.

However, an increase in demand is noted by a rightward shift in the Demand curve. This is to signify that the demand has changed even though the price had remained the same. This shift is meant to signify that something else apart from price has caused an increase in demand such as an increase in income. After the shift, the price will have to change to reflect a new Equilibrium which will be the new intersection point with the Supply Curve.

I have attached a graph showing what happens when Quantity Demand increases.

4 0
3 years ago
Ben, a product manager at SunRise Juice Co., is having a hard time choosing the wording for a new ready-made fruit smoothie prod
nikdorinn [45]

Answer:

  • I think Ben should encourage the Senior Management to call a multidisciplynary meeting and do some research.

Explanation:

<em>I think Ben is right</em>. Even though the statement is technically correct, it may mislead customers.

Customers may interpret the phrase "<em>no sugar added</em>" as if the product did not contain any sugar.

Thus, customers interested in drinking beverages without sugar at all might think  they are "safe" consuming the smoothie beverage, when in reallity each <em>smoothie's bottle contains sugar 35 g of naturally occurring sugars from the fruit.</em>

Customers deserve to be certain on what they are buying, thus the labels must be a sincere help for them, and not ambiguos at all.

This is a "gray zone" and an example of what in ethics is called a dilema.

I think the decision should be shared by a wider team and based on some research.

I think Ben should encourage the Senior Management to call a multidisciplynary meeting, where the subject is widely discussed. Also, I would suggest Ben to do some research, look for precedents about labeling  in the industry, and try to learn the opinion of the FDA about this sensitive matter.

6 0
3 years ago
Zoie makes 2 products from a common input. Each product may be sold at the split-off point or processed further. The following i
Ymorist [56]

Answer:

Zoie

The minimum amount the company should accept if Product 1 is sold at the split-off point is:

= $30,000.

Explanation:

a) Data and Calculations:

                                                          Product 1    Product 2

Allocated joint processing costs         21,200        35,700

Sales value at split-off point                38,100        19,200

Costs of further processing                17,000        19,900

Sales value after further processing 30,000       28,300

The minimum amount the company should accept if Product 1 is sold at the split-off point is $30,000.

b) Further processing of Product 1 does not make economic sense.  Zoie should sell the product at split-off point at $38,100.  Similarly, based on the facts provided, Product 2 hardly deserves further processing.

5 0
3 years ago
Luxx Inc. currently has assets to $5 million, zero debt, is in the 40 percent federal- plus-state tax bracket, has a net income
kakasveta [241]

Answer: a.)$25 ; b.) $30.96

Explanation:

A.) Stock's current price per share:

Net income = $1,000,000

Dividend paid = 0.40 x $1,000,000 = $400,000

Dividend per share before recapitalization = $400,000 / 200,000 = $2

Price of the share before recapitalization is calculated as:

D1 = $2 × 1.05  = $2.10

P0 = D1/Ke - g

= $2.10/ 0.134 - 0.05

= $25

B.) Portion of equity after recapitalization = (200, 000 x $25) - $1,000,000 = $4,000,000

Portion of debt = $1,000,000

Revised WACC after recapitalization = Ke x E/V + Kd(1-t) x D/V

= 0.145 x $4,000,000/$5,000,000 + 0.11 x (1-0.40) x $1,000,000/$5,000,000

= 0.1292

= 12.92%

Revised net income is calculated as:

Before tax income = $1,000,000/0.60 = $5M

Interest = 0.11 x $1,000,000 = $110,000

Earning before tax = $1556666

40% of tax = $622,666.4

Net income = $933,999.60

Revised dividend = $933,999.60 x 0.40 = $373599.84

DPS = $373599.84/(200,000 - ($1,000,000/$25))

$373599.84/160,000

= $2.335

Revised price of the share after recapitalization:

$2.335 x 1.05 / 0.1292 - 0.05

2.45175 / 0.0792

= $30.96

8 0
3 years ago
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