Answer:
Explanation:
The computation of expense amount is shown below:
= Expenses - adjusted prepaid expense + adjusted accrued expense
= $35,200 - $500 - $450
= $34,250
The adjusted prepaid expense is computed by
= Ending balance of prepaid expense - beginning balance of prepaid expense
= $1,800 - $1,300
= $500
And, the The adjusted accrued expense is computed by
= Ending balance of accrued expense - beginning balance of accrued expense
= $1,200 - $1,650
= -$450
Answer:
<h2>Post-Closing trial balance is usually prepared after the closing entries are posted to the ledger account.Hence,the correct answer is the third option or after closing entries are posted to the ledger accounts.</h2>
Explanation:
In Accounting,the main objective of preparing a post-closing trial balance is to ensure the completion and closure of all the temporary accounts and the equality between all the debit and credit entries have been consistently established once the closing entry has been done.Once the closing entries have been put into journal and finally posted in ledger,a detailed account or list of all the individual accounts along with their respective balances is prepared which is basically known as Post Closing Trial Balance Account.It includes all the unbalanced accounts from the original trial balance or the accounts which are not balanced based on debt and credit entries,at the end of the accounting or reporting year.Therefore,post-trial balance basically ensures that all the accounts entered in the original trial balance are zero balance or the debit and credit entries of all the individual accounts in trial balance are balanced or equal.
Answer:
C
Explanation:
I'm smart boy that's y because y = u and u nedda pay attention in class blood
Answer:
$116.28
Explanation:
This can be calculated as follows:
Mark up = [1 ÷ (1 - Lerner index)]
Price = Mark-up × Marginal cost
= [1 ÷ (1 - 0.57)] × $50
Price = [1 ÷ 0.43] × $50 = $116.28
Therefore, the price this firm will charge its customers is $116.28.
Answer: Please see the required journals below:
December 31:
Debit Bad debt expense $6,034
Credit Allowance for doubtful accounts $6,034
February 1:
Debit Allowance for doubtful accounts $431
Credit Accounts receivables $431
June 5:
Debit Cash $431
Credit Bad debt recovery (income statement) $431
Explanation: The company estimates its bad debt expense as percentage of sales. In this case 0.7% of its annual sales of $862,000 was deemed as uncollectible, that is, 0.7% x $862,000 = $6,034. The required journals to recognize this bad debt expense is provided above. However, since there was an existing provision, which resides in the allowance account, a write-off would definitely hit that account in order to extinguish the accounts receivable portion. Upon recovery of the write-off, we cannot reinstate the receivable since it was already extinguished but we need to recognize the recovery as a gain.
