A sudden rise in the market demand in a competitive industry leads to

Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2016, accounts receivable totaled $720,000. Th

Yuki888 [10]

Answer:

Journal

Date Account Titles and Explanation Debit Credit

Allowance for uncollectible accounts $30,500

Accounts Receivables $30,500

(To write off uncollectibles during the year)

Journal

Date Account Titles and Explanation Debit Credit

Account receivables $3,100

Allowance for uncollectible accounts $3,100

(To reinstate receivables written off earlier)

Journal

Date Account Titles and Explanation Debit Credit

Cash $3,100

Account receivables $3,100

(To record the recovery of bad debts)

Journal

Date Account Titles and Explanation Debit Credit

Bad debt expenses $48,000

Allowance for uncollectible accounts $48,000

(To record bad debts expenses)

<u>Workings</u>

Closing allowance = Opening allowance - Receivables written off + Receivables reinstated = $51,000 - $30,500 + $3,100 = $23,600

Expenses Bad debt = Receivables at the end of 2016 * Estimated percentage = $720,000 * 10% = $72,000

Allowance to be created = Estimated bad debts - Balance of Allowance at year end = $72,000 - $23,600 = $48,400

4 0

3 years ago

What are the three interrelated reports required by law for all publically traded companies that act as vital management tools f

Triss [41]

The answer is income statement, balance sheet, and statement of cash flows. The income statement defines how the assets and liabilities were used in the specified accounting period. The cash flow statement clarifies cash inflows and outflows, and it will eventually disclose the amount of cash the corporation has on hand, which is also stated in the balance sheet.

5 0

3 years ago

Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in __________

Vadim26 [7]

Answer:

The factor market

Explanation:

The factor market refers to buying and selling of factors of production. Factors of production are land, labor, capital, entrepreneurship. Prices of factors of production are determined by interaction of supply and demand forces. By Dave offering his labor, he receives wages as a reward for the factor of production he provides i.e. labor.

3 0

4 years ago

Joelle Company accumulated 530 hours of direct labor costs on Job 233 and 615 hours on Job 234. The total direct labor was incur

klio [65]

Answer:

Journal Entry

Job 233

Dr Wage Control A/c $10,600

Cr. Work in Process A/c $10,600

Job 234

Dr Wage Control A/c $12,300

Cr. Work in Process A/c $12,300

Explanation:

Work in process account is used to record all the cost of manufacturing products which is under process. This account maintain the records of product under process and transferred these costs when products are completed.

Job 233

Wage expense = 530 x $20 = $10,600

Job 234

Wage expense = 615 x $20 = $12,300

6 0

3 years ago

Read 2 more answers

Foods international is developing a new gluten-free, chili-flavored pretzel. the marketing strategy for the product has already

Pavlova-9 [17]

Once the final prototype is approved, the next step Foods international should do will most likely be test marketing. Test marketing is an experiment which is conducted in a field laboratory. The field laboratory denotes the test market and is comprised of actual stores and real-life buying situations . This tool is used by companies to check the viability of their new product before it is being launched in the real market.

Read more: http://www.businessdictionary.com/definition/test-marketing.html

5 0

3 years ago