The Doak Company has projected the following quarterly sales amounts for the coming year:
1 answer:
Answer: Check attachment
Explanation:
The cash collection was calculated as:
a. (90-45)/90 = 1/2
Q1 = 1700 + (1/2 × 3900)
= 1700 + 1950
= 3650
Q2 = 1950 + (1/2 × 4700)
= 1950 + 2350
= 4300
Q3 = 2350 + (1/2 × 4300)
= 2350 + 2150
= 4500
Q4 = 2150 + (1/2 × 3600)
= 2150 + 1800
= 3950
Check the attachments for further information.
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Answer:
$162,000 and $4,000 loss
Explanation:
The computation of the adjusted basis in the account receivable and the gain or loss is as follows:
As on Nov 1, the foreign currency rate on date of sale is $0.83
The account receivable should be recorded at
= 200,000 × $0.83
= $166,000
Now the foreign currency rate is reduced to $0.81
So the loss is recorded
= ($0.83 - $0.81) × $2,00,000
= $4,000 loss
And, Receivable balance on Dec 31 is
= $166,000 - $4,000
= $162,000
