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Bogdan [553]
2 years ago
5

All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. W

hat amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
Business
1 answer:
RideAnS [48]2 years ago
4 0

Answer:

$4,800

Explanation:

the company estimates that 0.6% of total sales will be bad credit, so to determine the amount of bad debts expenses debited at the end of the year: total sales x 0.6% = $800,000 x 0.6% = $4,800

When a company uses the percent of sales method to estimate bad debts, all we need to do is multiply the total amount of credit sales times the estimated percent. In this case, the company sells all its goods on credit, so credit sales = total sales

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Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machi
Fittoniya [83]

Answer:

The 16,700 are the PMT of an annuity-due considering the fair value of 126,890

lease receivable 126,890 debit

            Equipment           126,890 credit

--lease to Manufacturers Southern--

cash                        16,700 debit

    lease receivable           16,700 credit

--first lease payment--

cash                        16,700 debit

    interest revenues            6,611.4 credit

    lease receivable           10,088.6 credit

--second lease payment--

Explanation:

The 16,700 are the PMT of an annuity-due considering the fair value of 126,890

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV $ 126,890

time: 8 quarters

rate:  0.015 (6% annual over 4 quarter per year)

126890 \div \frac{1-(1+0.015)^{-8} }{0.015} = C\\

C  $ 16,699.977

<u>The first payment as s done right away,</u> has no interest and decreases entirely the lease receivable

<u>The second payment will accrue interest:</u>

carrying value x 6% interest expense =

(126,890 - 16,700) x 6% = 6,611.4‬

<u>Amortization on lease receivable: </u>16,700 - 6,611.4 = 10,088.6‬

6 0
3 years ago
Which agency is responsible for regulating the state boating laws in texas?
Oksanka [162]
The agency which is responsible for regulating the state boating law in Texas is TEXAS PARKS AND WILDLIFE DEPARTMENT. This agency oversees the laws that regulate boating in Texas waters. Their principal aim is to promote water safety for all. 
6 0
2 years ago
Wilturner Company incurs $85,000 of labor related directly to the product in the Assembly Department, and $34,000 of labor relat
Sav [38]

Answer:

Direct labor= $85,000

Manufacturing overhead= $55,000

Explanation:

Giving the following information:

Wilturner Company incurs $85,000 of labor related directly to the product in the Assembly Department, and $34,000 of labor related to the Assembly Department as a whole, and $21,000 of labor for services that help production in both the Assembly and Finishing departments.

M<u>anufacturing overhead is the number of production costs that can't be directly linked toa specific product. It includes indirect labor.</u>

Direct labor= $85,000

Manufacturing overhead= 34,000 + 21,000= $55,000

6 0
3 years ago
Using the Exxon data as an example, what would be the market capitalization of Penny's Pickles if each share is selling for $175
ElenaW [278]

Answer:$1,753,500

Explanation:I multiplied the amount of stacks availible and how much the stocks cost.

5 0
3 years ago
Read 2 more answers
Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children, who live with her. Charlott
Viefleur [7K]

Answer:

A) Charlotte's taxable income = salary - short term capital loss + cash price - standard deduction (larger than itemized deduction) = $80,000 - $2,000 + $4,000 - $24,000 = $58,000

B) Charlotte's tax liability during 2018 = $1,905 + [($58,000 - $19,050) x 12%] = $1,905 + ($38,950 x 12%) = $1,905 + $4,674 = $6,579

C) Charlotte's child and dependent tax credit for 2018 = ($2,000 x 4 children) + ($500 x 2 parents) = $8,000 + $1,000 = $9,000

*Interest from the City of Miami bonds is not taxable

3 0
3 years ago
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