Answer:
b. The balance of the Allowance for Doubtful Accounts will be $22,000 after adjustment.
Explanation:
If credit losses are estimated at 1% of credit sales than balance of allowance for doubtful account after adjustment will be = $6,000 + $1,600,000 * 1%
= $6,000 + $16,000
= $22,000
Answer:
$64,000
Explanation:
In order to be deductible, a business expense must be both ordinary and necessary. Being ordinary means that it is a plausible expense for this business, since the expense in question is related to accounting services, it is ordinary. Being necessary means that the expense is the minimum required and is appropriate and helpful to the business. In this case, all of the expense was not required, therefore, only $64,000 (the reasonable market value for the services provided) are deductible.
Answer:
Debit to loss on sale of equipment of $20,000
Explanation:
Data provided in the question:
Selling cost of the equipment = $100,000
Cost of the equipment = $300,000
Accumulated depreciation of the equipment = $180,000
Now,
The book value of the equipment
= Cost of the equipment - Accumulated depreciation
= $300,000 - $180,000
= $120,000
Therefore,
Proceeds for selling
= Selling cost of the equipment - Book value of the equipment
= $100,000 - $120,000
= - $20,000
Here, the negative sign depicts a loss
Hence,
The company’s journal entry to record the sale of the equipment would include a Debit to loss on sale of equipment of $20,000
Answer: nonbank financial institutions such as investment banks and hedge funds
