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3 years ago

When the allowance method of accounting for uncollectible accounts is used, then

Business

1 answer:

Brums [2.3K]3 years ago

4 0

Answer:

Bad debt expense is recorded in the same year as the credit sale.

Explanation:

Allowance method is generally refer to one of the ways for reporting the uncollectible or bad debt expense which results from a company selling the goods on credit.

This method is used for the process or procedure of uncollectible accounts receivable that records the estimate of the bad debt expense in the same accounting year to which is belongs as the sale. This method is used for adjust the accounts receivable appears on the balance sheet of the company.

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Totz Company produces jump ropes. Totz Company has the following sales projections for the upcoming year: First quarter budgete

professor190 [17]

Answer:

1st quarter:

Sales budget= 26,400 units

Explanation:

Giving the following information:

First-quarter budgeted jump rope sales in units 23,000

Second-quarter budgeted jump rope sales in units 70,000

Inventory at the beginning of the year was 3,600 jump ropes.

Totz Company wants to have 10% of the next quarter's sales in units on hand at the end of each quarter.

To determine the production budget, we need to take into account the beginning inventory, the sales for the quarter and the ending inventory.

Sales budget= sales for the quarter + ending inventory - beginning inventory

1st quarter:

Sales budget= 23,000 + (70,000*0.10) - 3,600= 26,400 units

3 0

3 years ago

arasota Company obtained land by issuing 3,380 shares of its $12 par value common stock. The land was recently appraised at $146

likoan [24]

Answer:

Dr Land $146,440

Cr Common stock (3,380 shares×$12 par value) $40,560

Cr Paid in Capital in excess of Par common stock $105,880

Explanation:

Arasota Company Journal entry

Dr Land $146,440

Cr Common stock (3,380 shares×$12 par value) $40,560

Cr Paid in Capital in excess of Par common stock $105,880

4 0

3 years ago

The following information pertains to Torque Corp.'s outstanding stock for 2021: Common stock, $1 par value Shares outstanding,

azamat

Answer:

135,000 shares

Explanation:

The stock split is the re-denomination of the shares where the number of shares increases without a corresponding increase in shareholders' equity.For instance assigning two shares for each share had earlier with two new shares priced at the price of previous one share,however in calculating the number of shares applicable to basic earnings stock split is treated retrospectively,as if it has always been part of the company's shares

Opening number of shares 60,000

add increase due to stock split(2*60,000)-60,000 60,000

new shares half-way through the year 30,000*6/12 15,000

Weighted average number of shares 135,000

7 0

3 years ago

Trade restrictions tend to preserve ________ in the protected industries and lead to ________ in other industries.

wolverine [178]

Trade restrictions tend to preserve relatively few jobs in the protected industries and lead to job losses in other industries. Trade restrictions can vary from quotas, embargoes, standards, subsidies, tariffs and more that make it hard to trade (important/export) goods between two companies and also set prices for these. Depending on what is allowed and what is not different industries can benefit from the trade restrictions and some can be harmed by them.

8 0

3 years ago

Alles Company uses a job costing system that applies factory overhead on the basis of direct labor dollars. No job was in proces

Kazeer [188]

Answer:

(a)

For Job G15:

Direct labor = $20,000

Overhead applied = 16,000

Overhead rate = $\frac{16,000}{20,000}\times 100$

= 0.8 × 100

= 80%

Overhead applied = Direct labor × 80%

= $20,000 × 80%

= $16,000

Overhead is applied on direct labor. Hence, rate is 80%.

Overhead for Job B10 = Direct labor × 80%

= $54,000 × 80%

= $43,200

Therefore,

Total overhead applied = $43,200 + 45,750 + 16,000

= $104,950

(b) Hence,

Overapplied overhead for February:

= Total overhead applied - Actual Overhead

= $104,950 - $68,500

= $36,450

4 0

3 years ago