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Leno4ka [110]
3 years ago
7

Fernandez Company had an accounts receivable balance of​ $150,000 on December​ 31, Year 2 and​ $175,000 on December​ 31, Year 3.

The company wrote off​ $40,000 of accounts receivable during Year 3. Sales for Year 3 totaled​ $600,000, and all sales were on account. The amount collected from customers on accounts receivable during Year 3​ was:
Business
2 answers:
kumpel [21]3 years ago
5 0

Answer:

The amount collected from customers on accounts receivable during Year 3​ was $535,000

Explanation:

Open a Total Trade Receivables Account and establish the cash collection amount from the <em>Balancing figure</em> as Follows:

Debits :

Opening Accounts Receivable Balance      $150,000

Sales for the Year (All on Account)              $600,000

Totals                                                              $750,000

Credits:

Closing  Accounts Receivable Balance       $175,000

Doubtful Debts Written Off                            $40,000

Cash (Balancing figure)                               $535,000

Totals                                                             $750,000

Mars2501 [29]3 years ago
4 0

Answer:

The amount collected from customers on accounts receivable during year 3 is $535,000.

Explanation:

Cash received from accounts receivable = Opening balance of AR + Credit Sales - Bad debts written off - Closing balance of AR.

  • The opening balance for year 3 account receivables was 150000.
  • Credit Sales = 600000
  • Bad debts = 40000
  • Closing Balance = 175000

We can solve this question either by making a T account for accounts receivable or using the equation given above.

Cash = 150000 + 600000 - 40000 - 175000 = $535000

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Why is producing a high quality product important to rolls royce ?
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Answer:

So the buyer wants the car.

Explanation:

Many people buy a rolls royce due to the high quality and they are on the knowledge that it is manufactured with high quality.

7 0
3 years ago
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masha68 [24]
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5 0
3 years ago
In late April, the Acme Construction Co. submitted a $1,200,000 progress billing on a construction contract.On May 2, the bill w
patriot [66]

Construction expenditures should be debited when <u>D. The bill is approved for payment.</u>

<u>Explanation:</u>

In the above scenario, Acme Construction Co. submitted bill amount of $1,200,000 on a construction contract. The payment of the bill was approved on May 2. According to the contract, 10% was subject to retention.

This construction expenditure is debited when the bill is approved for payment. Contract includes all the details regarding payment and terms and conditions between the companies or parties.

Once the bill submitted by company is approved, then the retention amount will be automatically debited.

8 0
3 years ago
The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pool
tatuchka [14]

Answer:

The ABC overhead for a Deluxe kayak will be $170.93

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

We are going to divide the overhead cost over the cost driver of each activity.

\left[\begin{array}{cccc}-&Overhead&Total&Rate\\fabric&246,000&10,000&24.6\\assembly&144,000&32,000&4.5\\setup&110,000&15&7,333.33\\\end{array}\right]

Now we apply the rate to Deluxe Kayak:

\left[\begin{array}{cccc}-&Rate&Deluxe&Overhead\\fabric&24.6&10,000&246,000\\assembly&4.5&24,000&108,000\\setup&7,333.33&10&73,333.33\\Total&-&-&427,333.33\\\end{array}\right]

Finally we divide the overhead for Deluxe between the units produced

427,333.33/ 2,500 = 170.933 = 170.93

3 0
3 years ago
A stock expects to pay a dividend of $5.49 per share next year. Dividends are expected to grow at 20 percent per year for the fo
navik [9.2K]

Answer:

The annual dividend expected to be paid by the stock nine years from today (D9) is $11.27 per share.

Explanation:

Note: See the attached excel file for the calculations of annual dividends expected to be paid the stock for Years 1 to 9.

In the attached excel file, the following formula is used:

Current year dividend = Previous year dividend * (100% + Growth rate)

From the attached excel file, the annual dividend expected to be paid by the stock nine years from today (D9) is $11.27 per share (Note: see the bold red color under the Year's 9 Current Year Dividend).

Download xlsx
5 0
3 years ago
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