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3 years ago

The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016:

Business

1 answer:

dybincka [34]3 years ago

6 0

Answer:

a. June 30, 2016 adjusting entry for bad debt expense

Dr Bad debt expense 9,108

Cr Allowance for doubtful accounts 9,108

b. August 15, 2016, uncollectible accounts are written off

Dr Allowance for doubtful accounts 3,251

Cr Accounts receivable 3,251

c. Allowance for doubtful accounts

debit credit

June 30, 2016 $38,565

August 15, 2016 $3,251

August 15, 2016 $35,314

Explanation:

Number of Days Total Accounts Historical % Total

Unpaid Receivable Uncollectible

Not yet due $128,200 3% $3,846

1-30 days past due $90,900 13% $11,817

31-60 days past due $55,300 19% $10,507

Over 60 days past due $33,500 37% $12,395

Total $38,565

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A $1 per unit tax levied on consumers of a good is equivalent to

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Based on accounting principles, a $1 per unit tax levied on consumers of a good is equivalent to "a $1 per unit tax levied on producers of the good."

This is based on the idea that the market reaches the exact equilibrium price irrespective of who is accountable for paying the money to the government.

In other words, when the government levies a tax on a good, producers are not exempted from the tax levy because that money will be recouped from the producers' sales or revenue.

Hence, in this case, it is concluded that tax on goods is inevitable to consumers and producers.

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2 years ago

A swot analysis contributes to the strategic planning process by identifying ____ resources.

velikii [3]

Below are the resources:

Logistical, human, technical, financial


A SWOT analysis is an organized arranging strategy that assesses those four components of an association, venture or business wander. A SWOT examination can be completed for an organization, item, place, industry, or individual. It includes determining the target of the business wander or extend and distinguishing the inside and outside variables that are great and negative to accomplish that goal.

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3 years ago

The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a pr

dedylja [7]

Answer:

1. Income Statement for Digital Vibe Manufacturing company

For the Month ended January 31

Sales 875,000

Cost of goods sold 525,000

Gross Profit 350,000

Operating Expenses:

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Administrative expenses 80,000

Total Operating expenses 205,000

Net Income $145,000

1. Ending material inventory = Material purchased - Used material in production

= 168,500 - 149,250

= $19,250

2. Ending work in Process inventory = Material used in production + Direct labor + Factory overhead - Transferred of work in process to finished goods

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=$29,250

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= $75,000

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2 years ago

Write a one sentence summary of the central dispute in the case of mcculloch. v. maryland identify the key individuals and insti

insens350 [35]

McCulloch v. Maryland represented a power struggle between the State and Federal law. It was a landmark decision by the Supreme Court of the United States. The state of Maryland had attempted to impede operation of a branch of the Second Bank of the United States by imposing a tax on all notes of banks not chartered in Maryland. Though the law, by its language, was generally applicable to all banks not chartered in Maryland, the Second Bank of the United States was the only out-of-state bank then existing in Maryland, and the law was recognized in the court's opinion as having specifically targeted the U.S. Bank.

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3 years ago

Suppose that instead of using a forward contract, you consider using options. A one-year call option to buy euros at a strike pr

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Answer:

Sell the put option. The put option is better and advantageous .

Explanation:

The call option is trading far below the strike price and poses risk. The price may not go up to $1.25 and hence not advisable. The put option is better as we stand to make a profit margin ($1.15 / Euro) if it sells the put at he strike price immediately. Given that the difference is high, it is unlikely that the price will move against us and we shall exercise the option as soon as the margin starts reducing.

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3 years ago