1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
hodyreva [135]
3 years ago
14

Mar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible.

Business
1 answer:
kogti [31]3 years ago
3 0

Answer: Please see the required journals below:

Mar. 17:

Debit Allowance for doubtful accounts $1,000

Credit Accounts receivable $1,000

July 29:

Debit Cash $1,000

Credit Bad debt recovery (income statement) $1,000

Explanation: On March 17, when $275 was received from Shawn and the remaining balance of $1,000 was written off, the allowance for doubtful accounts has to be debited since the company adopts the allowance method of accounting for uncollectible receivables. Note that the allowance account would have the required buffer to take care of this debit. Similarly, when the recovery was made, cash would be debited then the credit would default to income statement.

You might be interested in
Presented below are income statements prepared on a LIFO and FIFO basis for Sunland Company, which started operations on January
DiKsa [7]

Solution :

A.                                              Kenseth Company

                                   Income Statement (for the year ended)

                                                      2017        2016

Sales                                             3000        3000

Cost of goods sold                      1100           940

Operating expenses                    1000          1000

Income before profit sharing      9000         1060

Profit sharing expense                 96              100          

Net Income                                 $ 804          $ 960

The company must report $\$ \ 100$ as profit sharing expense in 2016, even though, profit sharing of expense may be $\$ \ 106$ if FIFO had been used in the year 2016.

B. The profit sharing of expense reflects the indirect effect of the change in an accounting principle. Under the SFAS No. 154, the indirect effects from period before the change are recorded in the year of the change.

In this case, profit sharing expense recorded in the year 2007 is composed of :

$ 900 x 10%     =   $ 90 (year 2017 under the FIFO)

$ 60 x 10%   = $ 6 (difference in the profit sharing for the year 2016)

       Net        = $ 96 (profit sharing expense for the FIFO in year 2017)

C.                              Retaining earnings statement of 2017

   Retained earning, Jan 1 as reported                                 $ 8000

   Cumulative effect of the change to $FIFO$ ($960 - $900)    $ 60

  Retained earnings , Jan 1, as adjusted                               $ 8060

  Add $:$ Net income                                                                   $\$ \ 804$

 Deduct $:$  Dividends                                                                   $ 500

 Retained earnings, Dec 31                                                       $ 8364

6 0
2 years ago
g Other things the same, if the exchange rate changes from 6 Chinese yuan per dollar to 7 Chinese yuan per dollar, then the doll
MrMuchimi

Answer:

appreciates and buys more Chinese goods

Explanation:

Nominal exchange rate is the rate at which one unit of currency can be exchanged for another unit of currency.

If exchange rate is 1 dollar for 6 Chinese yuan , it means that 1 dollar would buy 6 Chinese yuan.

If exchange rate now becomes 1 dollar for 7 Chinese yuan , it means that 1 dollar would buy 7 Chinese yuan.

One dollar is now buying more Chinese yaun (7>6). It means that the dollar has appreciated and the Yaun has depreciated.

Currency appreciation is when the a currency increases in value.

As a result the dollar would buy more Chinese goods.

I hope my answer helps you

5 0
3 years ago
Which of the following is an insurance company?
frez [133]
What are the options?
7 0
2 years ago
Read 2 more answers
Should banks have to hold 100% of their deposits? Why or why not?
fomenos

Answer:

No, they dont have to hold the 100%.

Explanation:

Because banks use the money deposited to make loans to other clients. By general rule the Commercial Banks are required to keep only the 10% of each deposit made in an account.

8 0
3 years ago
Rent is an example of a(n) _____.
faust18 [17]

Answer:

a. fixed cost

Explanation:

Rent is always negotiated and stated in the tenancy or lease agreement. The lease or tenancy agreement is reviewed either annually or after every two years. The rent amounts remain the same until the time a tenancy agreement is reviewed.

Fixed costs are the business expenses that remain the same throughout the financial period.  A business has to incur fixed costs as long as the business is operational. The level of business activity or output does not affect fixed costs. Rent is a good example of fixed costs. A business has the pay the same amount of rent regardless of its production level.

6 0
3 years ago
Read 2 more answers
Other questions:
  • A recent survey shows that people are retiring at the mean age of 60 and standard deviation 2.5. What proportion of people are r
    11·1 answer
  • On June 5, 2017, Javier Sanchez purchased and placed in service a 7-year class asset costing $560,000 for use in his landscaping
    8·1 answer
  • On august 1, harvey company offered to pay $13,000 for equipment that was advertised as being sold for $19,000 by carrone compan
    9·1 answer
  • Lionel was visiting a potential customer to discuss a sale of desktop computers. The customer informed Lionel that the customer’
    7·2 answers
  • George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,640. He has just decided to join the company’s
    5·1 answer
  • The recommended length of a mission statement is fewer than​ _____ words. A. 75 B. 100 C. 25 D. 500 E. 300
    6·1 answer
  • Jamieson Enterprises has presented the following information for the past year of operations Month Units Total Cost January 2,80
    14·1 answer
  • Taunton's is an all-equity firm that has 155,500 shares of stock outstanding. The CFO is considering borrowing $287,000 at 7 per
    10·1 answer
  • how long will it take 13,000 to grow to 18,000 if the investment earns at the interest rate of 3% compunded monthly
    5·1 answer
  • Typical structure characteristics of interest to Industrial Organization researchers include a.​Barriers to entry b.​Product
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!