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dolphi86 [110]
3 years ago
7

The analysis of receivables method of costing inventory is based on the assumption that: a.the bad debt expense is recorded only

when an account is determined to be worthless. b.the uncollectible accounts can be estimated as a percentage of credit sales. c.the bad debt expense is recorded by estimating uncollectible accounts at the end of the accounting period. d.the longer an account receivable is outstanding, the less likely that it will be collected.
Business
1 answer:
coldgirl [10]3 years ago
8 0

Answer:

b.the uncollectible accounts can be estimated as a percentage of credit sales.

Explanation:

Accounts receivable refer to money that customer owes a business. Receivable arises because a company may sell its goods or services on credit. An analysis of account receivable involves an assessment of the aging report to determine the receivables that are likely not be paid.  

The allowance method is one way of managing the uncollectable accounts receivable. This method involves the creation of account bad debts expense account and a contra-asset account, the allowance for doubtful accounts. The business makes a record of the amount is expects not to be collected at the end of the accounting period. When a specific account receivable is confirmed as uncollectible, the accountant debits allowance for doubtful accounts while crediting accounts receivable. The assumption under this method is the bad debt expense can be estimated as a percentage of the total sales.

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Yes. You can get expelled from school
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3 years ago
Read 2 more answers
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seropon [69]

Answer:

Net Cash flow from operating $55,000

Explanation:

<em>To determine the net cash flow from operating activities. We will adjust the net income as follows; all decrease in assets and increase in liabilities are added and all increase in assets and decrease in liabilities are subtracted.</em>

                                Amazing Industries  2018

Cash flow from operating activities

                                                      $

Net Income                                48,000

<em>Adjustments:</em>

less gain on sale of land                (4,000)

Add depreciation expense       7.000

increase in current asset           (1,000)           i,e  <em>(49,000 -48,000)</em>

Increase in current liabilities       <u>5000</u>         i.e  <em>(42,000 -37,000)</em>

Net Cash flow from operating      <u>55,000</u>

All decrease in assets and increase in liabilities are added. All increase in assets and decrease in liabilities are subtracte<u>d.</u>

8 0
3 years ago
E15-2 (Recording the Issuance of Common and Preferred Stock) Kathleen Battle Corporation was organized on January 1, 2014. It is
Mekhanik [1.2K]

Answer:

Explanation:

Jan 10 Issue of common stock for cash

Dr Cash 400,000 [80,000*5]

    Cr Common stock 80,000 [80,000*1]

    Cr Additional paid in capital - Common Stock [80,000*4] 320,000

Mar 1 Issue of preferred stock foor cash

Dr Cash 540,000 [5000*108]

     Cr Preferred stock [5000*1000] 500,000

     Cr Additional Paid in capital - Preferred stock 40,000

Apr 1 Issue of common stock for land

Dr Land 80,000

   Cr Common stock 24,000

   Cr Additional paid in capital - Common stock 56,000

May 1 Issue of common stock for cash

Dr Cash [80,000*7] 560,000

   Cr Common stock [80,000*1] 80,000

   Cr Additional paid in capital - Common stock 480,000

Aug 1

Dr Attorney 50,000

   Cr Common stock [1*10,000] 10,000

   Cr Additional paid in capital - Common stock 40,000

Sep 1  Issue of common stock for cash

Dr Cash [10,000*9] 90,000

   Cr Common stock [10,000*1] 10,000

   Cr Additional paid in capital - Common stock 80,000

Nov 1  Issue of preferred stock foor cash

Dr Cash 112,000 [1000*112]

     Cr Preferred stock [1000*100] 100,000

     Cr Additional Paid in capital - Preferred stock 12,000

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A project has several teams. Team C has repeatedly missed deadlines in the past. This has caused team D to have to crash the cri
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Answer:

cfg

Explanation:

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1 year ago
Allocate $249,000 net income by providing annual salary allowances of $66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas; gr
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Answer:

Some information was missing: Ries invested $80,000 , Bax invested $112,000, and Thomas invested $128,000.

allocation of profits:

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Bax = $56,000 + ($112,000 x 10%) = $67,200

Thomas = $80,000 + ($128,000 x 10%) = $92,800

total = $234,000

remaining profits = $249,000 - $234,000 = $15,000 / 3 = $5,000

total allocation of profits:

  • Ries = $79,000
  • Bax = $72,200
  • Thomas = $97,800
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