Answer:
The effect the entry to recognize the uncollectible accounts expense for Year 2 will have on the elements of the financial statements are that it will reduce Accounts Receivable to $15,560 and the Allowance for Doubtful Accounts to $1,900 at the end of Year 2.
Explanation:
Credit sales estimated to be uncollectable = Credit sales * Estimated percentage uncollectable = $215,000 * 1% = $2,150
Ending account receivable = Beginning accounts receivable + Credit sales - Cash collected - Receivales written off as uncollectable - Credit sales estimated to be uncollectable = $76,000 + $215,000 - $271,100 - $2,100 - $2,150 = $15,560
Ending Allowance for Doubtful Accounts = Beginning Allowance for Doubtful Accounts - Allowance for Doubtful Accounts - Receivales written off as uncollectable = $4,000 - $2,100 = $1,900
Therefore, the effect the entry to recognize the uncollectible accounts expense for Year 2 will have on the elements of the financial statements are that it will reduce Accounts Receivable to $15,560 and the Allowance for Doubtful Accounts to $1,900 at the end of Year 2.
Answer:
Accrued Revenues, Accrued Expenses, Deferred Revenue, Deferred Expense
Explanation:
Accrued Revenue:
When a revenue is recognised but, the payment is not yet received
Accrued Expense:
When an expense is recognised but, the payment is not yet done.
Deferred Revenue:
When the cash is received but the services are yet to be provided
Deferred Expense:
When the payment is done in advance and services will be received over time
Answer and Explanation:
Dividends are received on top of investments made under the mutual fund company. Credit is not allowed on any type of capital gains from the Mutual Fund under the rules, hence the capital gains of Mr. & Mrs. Able should be reported on their current year long-term gains So, $9500 will be reported for the current year tax return.
Answer:
With a <u>CASHIER'S CHECK</u>, the bank serves both as the drawer and the drawee. The most common type of negotiable instrument is a(n) <u>PROMISSORY NOTE</u>.
Explanation:
A cashier's check is a negotiable instrument because it is in writing, it is an unconditional order to pay, it is signed by the bank (the drawer), it orders the bank (the drawee) to pay a certain specified amount of money to the bearer of the check.
A promissory note is a signed document that promises an unconditional payment to a specific individual or legal entity (business). A promissory note can include a specific date for the payment or the payment can be made on demand.
Answer:
$329 unfavorable
Explanation:
The fixed manufacturing overhead volume variance shows how much the actual production differs from the budgeted production.
Fixed manufacturing overhead volume variance is computed as;
= Actual output at budgeted rate - Budgeted fixed overhead
= (4,830 × $4.70) - ($4.70 × 4,900)
= $22,701 - $23030
= $329 unfavorable
Therefore, the overall fixed manufacturing volume variance for the month is $329 unfavorable