Answer:
Air France should have recognized the Revenue in month of APRIL.
Explanation:
According to the revenue recognition concept the revenue should be recognized when it is realizable. When goods or services are tranferred or rendered to the customer. It doesn't matter matter when the payment is received. Payment received in advance should be recorded as unearned revenue rather as revenue. On the other hand payment doesn't received until the transfer of goods or services, a receivable will be made in result of revenue recognition entry. Air France should recognize the revenue on April 5, when the flight took placed and services are performed. Sale of ticked on January 26 will be recorded as unearned revenue and a receivable on the other hand. The receivable will be adjusted on February 4 when cash is received and the revenue will be recognized on April 5 when flight took place.
Answer:
Explanation:
Let x be the amount loaned at 7% and ($19,000 - x) be the amount loaned at 15%
Given:
Interest incurred at 7%, I1 + Interest incurred at 15%, I2 = $2000
Interest, I = amount × rate
I1 = 7/100 × x
I2 = 15/100 × ($19,000 - x)
From the above expressions,
(0.07)x + (0.15) × ($19,000 - x) = $2,000
Solving for x,
0.07x + 2850 - 0.15x = 2000
Collecting like terms,
0.08x = 850
x = $10625
The amount loaned at 7% interest is
$10625
The amount loaned at 15% interest is ($19000 - $10625)
= $8375
Answer:
unenforceable;
preexisting duty
Explanation:
Preexisting Duty Doctrine
This is simply regarded as when an individual is already under an obligation to do something. It simply states that the rules and guidelines under contract law that shows that if a party to a contract is under a pre-existing duty to perform, then no second thought (consideration) is taken for the modification of the contract. Modification is then voidable.
3 Types of Legal Duties
1. Public Legal Duties such ad the duty of a police officer to protect lives and properties.
2. Contractual Legal Duties such as unperformed, preexisting contractual promises etc.
3. Private Legal Duties such as the duty to follow the law.
Unenforceable Contracts
This is regarded as a contract that cannot be enforced/given consideration or effect by the court of law etc unless they are settled and corrected according to law.
Kinds of unenforceable contracts
1.) Those entered into in the name of another by one without, or acting in excess of rights or authority;
2.) Those that do not comply with the Statute of Frauds etc.
Answer:
$1,583
Explanation:
Accounts receivables as at 31/12/2021 = $236,000
A/R as at 31/12/2022 :
= Accounts receivables as at 31/12/2021 + increase in AR
= $236,000 + $22,300
= $258,300
Uncollectible accounts = 1% of accounts receivables
= 1% × $258,300
= $2,583
Allowance 31/12/2021 = $8,400
Writes off = $7,400
Therefore,
Allowance = Allowance 31/12/2021 - writes ofd
= $8,400 - $7,400
= $1,000
Hence,
Bad debt expense for 2021 = Uncollectible accounts - Allowance
= $2,583 - $1,000
= $1,583
