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DedPeter [7]
2 years ago
10

The December 31, 2020, Allowance account balance includes $3,076 for a past due account that is not likely to be collected. This

account has not been written off. (1) If it had been written off, will there be any effect of the write-off on the working capital at December 31, 2020?
Business
1 answer:
Blizzard [7]2 years ago
8 0

Answer:

There will be no effect on working capital upon write off as the entries required would be a credit to receivables and a debit to allowance account.

Explanation:

The allowance account is the account used to record receivables due that may not be collectible.

When a company has determined that a receivable may be uncollectible, the company credits the allowance for receivables account and debits bad debit expense. This reduces the accounts receivable balance in the balance sheet as the receivables to be reported will be net the allowance given. As such, where on December 31, 2020, Allowance account balance includes $3,076 for a past due account that is not likely to be collected.

There will be no effect on working capital upon write off as the entries required would be a credit to receivables and a debit to allowance account.

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Palmona Co. establishes a $140 petty cash fund on January 1. On January 8, the fund shows $29 in cash along with receipts for th
Korolek [52]

Answer:

Entries are posted

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

January 1 (Cash fund being recorded in petty cash)

Account                                   Debit         Credit

Petty Cash                              $140

Cash                                                            $140

January 8

Postage                                   $46

transportation-in                     $14

delivery expenses,                  $16

miscellaneous expenses,       $35

Cash                                                               $111

January 8 ( petty cash funds being increased )

Pettcash                                  $50

Cash                                                               $50

8 0
3 years ago
One way in which international trade results in a higher standard of living?
Whitepunk [10]
I will will engage with this "The more a nation engages in International Trade<span>, the better its </span>Standard of Living<span> will be, because no nation can make </span>everything<span>."</span>
3 0
2 years ago
Barlow Company's Accounts Payable balance at December 31, 2008, was P1,800,000 before considering the following transactions: •
mrs_skeptik [129]

Answer: The answer is 1950000

Explanation:

✓ Goods in transit on December 31, 2008:

Goods amounting to 100000 will be added into purchases of the year-end because they have already been sold as risk and rewards have been transferred to the Barlow that is goods have been physically dispatched to the Barlow. Hence this will increase accounts payable by 100000.

✓Goods in transit lost:

These words will also be included in the purchases and accordingly in the accounts payable irrespective of the fact that these have been destroyed. These goods were dispatched to the Barlow and therefore risk and rewards also been transferred hence purchase is done from Barlow's perspective.

So:

Total accounts payables are as under

Opening balance: 180000

Goods in transit reached next year:100000

Goods in transit lost:50000

Total: 1950000

4 0
3 years ago
What is one of the advantages of buying an existing business
Sloan [31]
Here are several advantages to buying an existing business; Immediate cash flow, existing costumers, suppliers, and financial history.
7 0
3 years ago
After Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy.
aleksandr82 [10.1K]

Answer: should be protected due to the fact that their account is insured by FDIC.

Explanation:

From the question, we are informed that after Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy but that the Bigbux was an FDIC member bank.

Based on the above scenario, Xavier and Alyssa should be protected due to the fact that their account is insured by FDIC. Since the bank is insured, their money is safe.

4 0
3 years ago
Read 2 more answers
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