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3 years ago

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What happens if the amount of Bad Debt Expense is overstated at year end? A : Net income will be overstated. B : Allowance for D

oubtful Accounts will be understated. C : Stockholders' equity will be overstated. D : Net Accounts Receivable will be understated.

1 answer:

Yuri [45]3 years ago

5 0

Answer:

D. Net Accounts Receivable will be understated

Explanation:

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Journalizing purchase and sales transactions

Firdavs [7]

Based on the given purchase and sale transactions, the journal entries are:

Date Account Title Debit Credit

Feb 3 Merchandise inventory 3,300

Account payable 3,300

Feb 7 Account payable 900

Merchandise inventory 900

Feb 9 Merchandise inventory 400

Cash 400

Feb 10 Account receivable 4,700

Sales revenue 4,700

Feb 10 Cost of goods 2,350

Freight out 370

Merchandise inventory 2,350

Cash 370

Feb 12 Account payable 2,400

Cash 2,328

Merchandise inventory 72

Feb 28 Cash 4,606

Sales discount 94

Account receivable 4,700

<h3 /><h3>What are the journal entries?</h3>

When goods are purchased, they will be debited to the Merchandise inventory account. If they were paid for with cash, they will be credited to the cash account. On account is credited to Accounts Payable.

When goods are sold, the cost of goods sold will have to be debited to account for the cost of the purchase that is now being sold.

Because the goods were paid for in the discount period, a 3% discount would apply:

= 2,400 x (1 - 3%)
= $2,328

A 2% discount would apply to the Feb 10. sales for the same reason:
= 4,700 x (1 - 2%)

= $4,606

Find out more on discount terms at brainly.com/question/24086159.

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4 0

2 years ago

The total poverty gap can also be defined as the: a. absolute number of people below the international poverty line. b. percenta

Lelechka [254]

Answer: The answer is " percentage of a country's total expenditure necessary to bring the population of the country who are living below the poverty line, up to the poverty line.

Explanation:

The total poverty gap can be defined as the index which measures the intensity of poverty. It is the average gap in the population as a proportion of the poverty line.

The gap defines the place which is required to bring the people upto poverty line. The total amount of income that is lagging in the population to reach the poverty line.

8 0

3 years ago

_____ occurs when investors earn interest in the current time period on interest earned in previous time periods.

Oliga [24]

Is it Compound interest?

7 0

3 years ago

Axiom Corporation reported the book value of its net assets at $600,000 when Zebra Corporation acquired 100 percent ownership. T

Nutka1998 [239]

Answer:

$50,000

Explanation:

Goodwill is the excess of purchase consideration over the net assets of the business acquired.

Purchase consideration in this case is $950,000

The net assets =fair value of assets-fair value of liabilities

The fair value of net assets is already computed at $900,000 as provided in the question.

Goodwill=$950,000-$900,000=$50,000

Ultimately, the excess of purchase consideration over fair of net assets of the acquired business is $50,000

7 0

3 years ago

Assume that your parents wanted to have $ 180 comma 000 saved for college by your 18th birthday and they started saving on your

stepladder [879]

Answer:

a. How much would they have to save each year to reach their goal?

43860,44

b. If they think you will take five years instead of four to graduate and decide to have $ 220 comma 000 saved just in case, how much would they have to save each year to reach their new goal?

48246,48

Explanation:

FVOrdinary Annuity=C*(1+i)n-1/i

ANNUiTY=(180000)/(1+10%)>18/10%

Annuty 2000000 1,10

45,59917313 5,559917313

43860,44444

Monthly % N Monthly % VF

43860,44444 1,10 17 43860,44444 5,05 221.691,31

43860,44444 1,10 16 43860,44444 4,59 201.537,56

43860,44444 1,10 15 43860,44444 4,18 183.215,96

43860,44444 1,10 14 43860,44444 3,80 166.559,96

43860,44444 1,10 13 43860,44444 3,45 151.418,15

43860,44444 1,10 12 43860,44444 3,14 137.652,86

43860,44444 1,10 11 43860,44444 2,85 125.138,97

43860,44444 1,10 10 43860,44444 2,59 113.762,70

43860,44444 1,10 9 43860,44444 2,36 103.420,63

43860,44444 1,10 8 43860,44444 2,14 94.018,76

43860,44444 1,10 7 43860,44444 1,95 85.471,60

43860,44444 1,10 6 43860,44444 1,77 77.701,45

43860,44444 1,10 5 43860,44444 1,61 70.637,68

43860,44444 1,10 4 43860,44444 1,46 64.216,08

43860,44444 1,10 3 43860,44444 1,33 58.378,25

43860,44444 1,10 2 43860,44444 1,21 53.071,14

43860,44444 1,10 1 43860,44444 1,10 48.246,49

43860,44444 1,10 0 43860,44444 1,00 43.860,44

2000000

FVOrdinary Annuity=C*(1+i)n-1/i

ANNUiTY=(180000)/(1+10%)>18/10%

Annuty 2200000

45,59917313

48246,48889

4 0

3 years ago