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S_A_V [24]
3 years ago
12

Solstice Company determines on October 1 that it cannot collect $60,000 of its accounts receivable from its customer, P. Moore.

Apply the direct write-off method to record this loss as of October 1.
Required:
Record the write off an account.
Date General Journal Debit Credit
Business
1 answer:
djverab [1.8K]3 years ago
4 0

Answer and Explanation:

The journal entry is shown below:

Bad debts expense Dr $60,000  

        To Accounts receivable $60,000

(Being the written off amount is recorded)

For recording this we debited the bad debt expense as it increased the expenses and credited the account receivable as it reduced the assets

So for correcting posting and recording we passed accurate entry

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Differential Analysis for a Lease or Buy Decision
il63 [147K]

Answer:

Lease Equipment $150,000

BUY EQUIPMENT$134,700

Differential Effects-$15,300

The company should choose BUY EQUIPMENT which is Alternative 2

Explanation:

Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment

Differential Analysis

Lease (Alt. 1) or Buy (Alt. 2) Equipment

March 15

Lease Equipment (Alternative 1); Buy Equipment

(Alternative 2); Differential Effects (Alternative 2)

Costs:

Purchase price $0 $120,000 $120,000

Freight and installation $0 $1,500 $1,500

Repair and maintenance (6 years) $0 $13,200.$13,200

($2,200*6=$13,200)

Lease (6 years) $150,000 $0 -$150,000

($25,000*6)

Total costs $150,000 $134,700 -$15,300

Based on the above calculation the company should choose BUY EQUIPMENT which is Alternative 2

4 0
3 years ago
A manufacturer of washing machines has expanded its plant and has created excess capacity, just as the general economy has taken
Lostsunrise [7]

Answer:

. b. offer rebates and incentives for customers who purchase washing machines.

Explanation:

Increasing the productive structure of a firm must be carefully planned. There needs to be demand and take into account the expectations of the economy. When a company increases its structure over an inadequate period, the strategy can be fatal, as firms typically go to great lengths to make investments. In the case described, the company now has an idle capacity, ie does not use all its productive infrastructure. This is compounded by the moment of narrated economic crisis. In this situation, the company is most likely to promote price incentives through discounts to stimulate demand for washing machines. Thus, the employer gets a breath to maintain its activities until the economy recovers and she can use all the installed capacity.

8 0
3 years ago
A currency trader observes that in the spot exchange market, one U.S. dollar can be exchanged for 10.875 Mexican pesos or for 6.
Anastaziya [24]

Answer:

d. 1.753 pesos/krone

Explanation:

The computation of the received pesos for exchange is shown below

Received pesos = Exchange value of one U.S dollar for Mexican pesos  ÷ Exchange value of one U.S dollar for Mexican pesos

= 10.875 ÷ 6.205

= 1.753 pesos/krone

It shows a relationship between the Exchange value of one U.S dollar for Mexican pesos and the Exchange value of one U.S dollar for Mexican pesos so that per pesos/krone can come

4 0
3 years ago
Southland farm sold ten september futures contracts on wheat. Southland farm will:______.
Oliga [24]

Southland farm sold ten September futures contracts on wheat. Southland farm will: both receive payment and deliver in September. Option A. This is further explained below.

<h3>What is the payment?</h3>

Generally, the act or process of making a monetary contribution to someone or something, or of receiving a monetary contribution.

In conclusion, Wheat futures contracts were sold by Southland Farm for 10 contracts in September. September will be a busy month for the Southland farm, with both payments and deliveries.

Read more about payment

brainly.com/question/15136793

#SPJ1

8 0
2 years ago
Matching is:
kvasek [131]

Answer:

2. A result of recognizing revenues and expenses that arise from the same transaction.

Explanation:

Matching is a concept in accounting which favors the accrual accounting over cash basis of accounting.

It is a concept in which the cost incurred during the course of carrying out some activities that generate revenue is match to the revenue generated.

Hence Matching is a result of recognizing revenues and expenses that arise from the same transaction.

3 0
2 years ago
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