1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kolbaska11 [484]
3 years ago
12

The balance sheet of Bonita Company at December 31, 2016, includes the following. Notes receivable $36,200 Accounts receivable 1

95,800 Less: Allowance for doubtful accounts 20,700 $211,300 Transactions in 2017 include the following. 1. Accounts receivable of $142,700 were collected including accounts of $69,300 on which 3% sales discounts were allowed. 2. $5,920 was received in payment of an account which was written off the books as worthless in 2016. 3. Customer accounts of $20,900 were written off during the year. 4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $23,200. This estimate is based on an analysis of aged accounts receivable. Prepare all journal entries necessary to reflect the transactions above
Business
1 answer:
Eva8 [605]3 years ago
3 0

Answer:

To record cash received on Accounts Receivable

Debit: Cash    140,621

Debit: Sales Discount   2079

Credit: Accounts Receivable 142,700

Bad Debts Recovered

Part 1

Debit:  Bank   5,920

Credit: Bad Debts Recovered Account 5,920

Part 2

Debit: Bad Debts Recovered Account 5,920

Credit: Profit & Loss Account  5,920

Customer Account written off

Debit:  Bad Debts  20,900

Credit: Accounts Receivable   20,900

Allowance for Doubtful Accounts(Increase in Allowance[23200-20700])

Debit: Allowance for Doubtful Debts Accounts 2500

Credit: Accounts Receivable   2500

Explanation:

1. Accounts receivable of $142,700 were collected including accounts of $69,300 on which 3% sales discounts were allowed.

3% on 69,300 was calculated to arrive at 2,079

2. $5,920 was received in payment of an account which was written off the books as worthless in 2016.

This was an account already written off as Bad debt. The bad debt entry initially posted would have affected the Profit and Loss. Two journals were needed to recover it from the Bad debt account and recognise it as income again.

3. Customer accounts of $20,900 were written off during the year.

This was an entry recorded directly as Bad debt account.

4.At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $23,200.

This was an increase on the previous balance. As such Accounts Receivable is decreased while Provision for Doubtful debt is increased with the difference.

You might be interested in
3. Suppose you are thinking of purchasing the Moore Co.’s common stock today. If you expect Moore to pay $3.1, $3.38, $3.70, $4.
BlackZzzverrR [31]

Answer:

$69.87

Explanation:

The price i would be willing to pay for the stock can be determined by finding the present value of the dividend payments

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 3.1

Cash flow in year 2 = 3.38

Cash flow in year 3 = 3.70

Cash flow in year 4 = 4.02

Cash flow in year 5 = 4.38 + 95 = 99.38

I = 11%

Present value = $69.87

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

8 0
3 years ago
If your answer is zero, enter "O". a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $2,340 a mon
scoundrel [369]

Answer:

$2,400 in 2019 are deductible as alimony.

Step-by-step explanation:

Hillary get divorced in the year = 2016

She has to pay her ex-spouse $200 per month until her son reaches 18 years of age in 7 years.

His son will reach of the age of 18 = 2016 + 7 = 2023

She has to pay $200 till 2023 and $120 thereafter.

Her payments are deductible as alimony in 2019 would be = $200 × 12

                                                                                                 = $2,400

$2,400 in 2019 are deductible as alimony.

4 0
3 years ago
The partners in the biz partnership have agreed that partner mandy may sell her $100,000 equity in the partnership to brittney,
Ivahew [28]

Answer:

Mandy Capital                     A/c   Dr.  $100,000

Brittney Capital                  A/c    Cr.                     $100,000

Explanation:

Mandy selling $100,000 shares of assets, so we will report the transaction on the sale of stock by the amount of equity sold. Now, all parties will negotiate the price that one can sell to another for this equity valuation, which would be $85,000 in this case.

3 0
3 years ago
Whats a good way to start a business
aniked [119]

Answer:

first find a business idea and make a plan (logo, name, what item ur selling..etc.)

8 0
3 years ago
The use of a variety of marketing channels to ensure maximum distribution is best called _______.
Delicious77 [7]
I believe the answer is B
7 0
3 years ago
Other questions:
  • Which payment method typically charges the highest interest rate
    10·1 answer
  • On October 1, Hill Corporation signed a 6-month note with principal of $10,000 and interest of $600 due in six months. The state
    11·1 answer
  • Access to lifesaving medicine is very limited in parts of Africa; as a result, over 10% of children do not reach the age of five
    7·1 answer
  • Which types of teams most are appropriate when the primary goal is innovation and the organization needs flexibility to cope wit
    12·1 answer
  • An appliance store carries a specialty model of microwave ovens. The demand for the microwave oven is relatively constant at 250
    15·1 answer
  • The Securities Investor Protection Corporation is a government agency charged with administering the liquidation of failed secur
    10·1 answer
  • Which of the following business combinations is a vertical integration? A. The corner gas station buys the competitor across the
    5·1 answer
  • A store has issued two different coupons for its customers to use. One coupon gives customers $20 off their purchase price, and
    12·1 answer
  • Which factor would credit card companies most likely use to determine an
    8·2 answers
  • Why did Henry Gantt suggest that frontline supervisors should receive a bonus for each of their workers who completed their assi
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!