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Deffense [45]
3 years ago
6

g An analysis and aging of Headland Corp. accounts receivable at December 31, 2017, disclosed the following. Amounts estimated t

o be uncollectible $ 182,490 Accounts receivable 1,776,700 Allowance for doubtful accounts (per books) 127,430 What is the net realizable value of Headland’s receivables at December 31, 2017? The net realizable value
Business
1 answer:
kaheart [24]3 years ago
5 0

Answer:

Net Realizable Value of Accounts receivable $ 1,594,210

Explanation:

Dr Accounts receivable $ 1,776,700

Cr Allowance for Uncollectible Accounts $ 127,430

Net Realizable Value of Accounts receivable $ 1,594,210

Amounts estimated to be uncollectible $ 182,490  

Dr Bad Debt Expense $ 55,060

Cr Allowance for Uncollectible Accounts $ 55,060

FINAL BALANCE  

Cr Allowance for Uncollectible Accounts $ 182,490

The final net realizable value it's defined as the total gross value of accounts receivable minus the final value estimated as uncollectible.

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of estimated value.

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the value estimated as bad debts.

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

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Manuel has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Poornima
Verdich [7]

Answer:

3. Correctly ignored a sunk cost

Explanation:

Sunk costs refer to those costs which have been incurred in the past and which can no longer be recovered. For example, past expenditure on research and development with no current or future benefits represent sunk costs which can no longer be recovered.

Sunk costs are irrelevant for decision making process as they do not relate to current projects and yield no economic benefit.

In the given case, Manuel had already purchased a $10 movie ticket, which can neither be transferred nor eligible for a refund.  Later when he does not exercise the option of going for the movie and opts for a concert instead, the amount of 10$ spent on the movie represents a sunk cost which is non recoverable.

8 0
2 years ago
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 46,000 mini refrigerators, of whi
notsponge [240]

Answer:

                                                                     $

Sales                                                       8,800,000

Less: Cost of goods sold (W1)               5,241,739.13

Contribution                                          3,558,260.87

Less: Fixed manufacturing cost               598,000

Less: Fixed selling and admin cost          320,000

Net Income                                            2,640,260.87

<em>(W1) Cost of goods sold</em>

Direct Material                                  3,450,000

Direct Labour                                    1,196,000

Variable manufacturing cost              782,000

Variable selling cost                            600,000

Total variable cost                            6,028,000

Less:closing inventory                     786,260.87 (6,028,000/46,000*6,000)

COST OF GOODS SOLD                  5,241,739.13

8 0
3 years ago
Type an I beside the items that are used for state income and an E for those that are state expenses.
Anastaziya [24]

Answer:

e, e ,i, i, i, e is the order from top to bottom

3 0
2 years ago
From theory, what are some communication channels and barriers? Now from professional experiences, what are some communication c
Ira Lisetskai [31]

Answer:

Communication channels are the channels with which information are passed from one to person to another. Messages and ideas are exchanged using these channels to complete the communication process.

Explanation:

Types of communication channels are:

Email

Social media

TelephoneTelevision

Radio

Face-to-face communication

Oral and written communication

Verbal and non-verbal communication.

Communication can be through the use of words or without words, such as the use of signs and gestures. Communication can take place physical and otherwise.

Barriers in communication this are the things that create disturbances in sent messages and thereby causing a misunderstanding between the sender and receiver.

Barriers are:

Poor communication skills: when an individual communication skill is weak, such individual lacks the confidence to communicate effectively in front of others.

Noise disturbance: Noise disturbance is a barrier that hampers the clarity of a message.

Language barriers: The language barrier occurs when there is diversity in an organization workforce. languages or accents differ fromLanguage to language same as cultures.

Perception differences: This occurs when the senders point of view and receivers doesn’t match up which results in lack of understanding.

Wrong pronunciation of words and poor usage of vocabulary: By not pronouncing words accurately and correctly, wrong message might be passed.

the communication channels in a professional settings are:

Formal communication: the use of written letters and e-mails to colleagues, senior management, or the exchange of thoughts through official presentations before board members.

Informal communication: this kind of message channel exist between acquittances people we are familiar with. Any style and words not suitable in formal communication mode can be used here.

Barriers at the professional level are:

Organizational Hierarchy: due to the long chain of hierarchy or it passes through this alters the original message.

Lack of knowledge of non-verbal communication: Body language, gestures and postures are essential factors of communication as a wrong gestures and postures communicate false messages.

Low confidence level: For am individual to be able face a crowd and pass effective communication he needs his confidence level high.

Clarity in the message: The message been passed must be clear, concise and simple. Free of grammatical and spelling errors.

High confidence level: a confident speakers communicates easily, which his message easy to grasp and understand.

Feedback: for a communication process to be complete the receiver must give a feedback.

Good communication skills:

1. Practicing like they say practice makes perfect.

2. Proper pronunciation of words.

6 0
3 years ago
One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in th
scoray [572]
A. The size of the factory is fixed.

We know there will always be costs of rent and etc when running a business so even in the short run there is fixed costs. The output is always variable depending on the number of workers. The number of workers is also not fixed, but the size of the factory is because you cant just get up and move your business over night, it costs money and is a lot of work.  
8 0
3 years ago
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