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2 years ago

The matching principle:

Business

1 answer:

KengaRu [80]2 years ago

8 0

Answer: Option D

Explanation: Matching principle is an accounting standard which states that the expenses incurred in a period should be recognized in the period in which the revenue relating to that expense is earned regardless of the fact when the cash exchange has been done.

So, as per the given problem option D is the right answer.

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Bad Debt Expense info:Allowance for Doubtful Accounts has a credit balance of $1,000. Credit sales are $500,000. Cash sales are

kow [346]

Answer:

Bad Debt Expense $24,000 Dr

Allowance for Doubtful Accounts $24,000 Cr

Explanation:

Data:

BB = Beginning Balance = $1,000

CS = Credit Sales = $500,000

CH = Cash Sales = $500,000

SM = Percentage Sales Method = 5% = 0.05

U = Uncollectible = $25,000

AR = Accounts Receivable = $200,000

ADA = Allowance for Doubtful Accounts = ?

Calculations:

ADA = U - BB = $25,000 - $1,000 = $24,000

Net Realizable Cash Value = AR - ADA = $200,000 - $24,000 = $176,000

Balance in the Allowance Account after the adjusting entry = BB + ADA = $1,000 + $24,000 = $25,000

Journal entry:

Bad Debt Expense $24,000 Dr

Allowance for Doubtful Accounts $24,000 Cr

Hope this helps!

8 0

3 years ago

The _____ is the value of the inputs you provide divided by the value of the outcomes you receive in the exchange relationship.

Sav [38]

Answer:

d. input/outcome ratio

Explanation:

These are options for the question

a. input ratio

b. output ratio

c. outcome/input ratio

d. input/outcome ratio

e. manager/employee ratio

Exchange relationship which is opposite of communal relationship can be described as benefit relationship in which you provide a benefit in expectation of equivalent benefit return in future time.

It should be noted that input/outcome ratio is used in the calculation of exchange relationship you received.

Which is the value of the inputs you provide per the value of the outcomes been received

8 0

2 years ago

6) If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate is A) 5 percent. B

mrs_skeptik [129]

Your answer would be 10%

7 0

2 years ago

1. Do you think evidence-based management seems like common sense? If so, why wasn’t it advocated earlier? 2. Are there circumst

Tom [10]

1. Evidence-based management seems like common sense initially, but the reality is not that simple. Managers are often hired based on their experience. Therefore, people tend to believe their word more than they would believe some types of concrete evidence. Moreover, even when evidence does not change, it can be interpreted in various ways by different people, making objectivity impossible.

2. Sometimes, evidence-based management might not be the best approach. This would especially be the case in situations where a manager might be very experienced. It might be better to trust the manager's interpretation of events as opposed to what the evidence might suggest.

3. It is unlikely that automated evidence-based management could ever fully replace human decision-makers. This is because automated managers might not be sensitive enough to human matters that are important for a correct interpretation of evidence.

4. I would want to work under this system, as ultimately the system is most likely to lead to efficient outcomes. Moreover, under this system, all workers are treated in the same way.

5 0

2 years ago

On January 1, 2020, Hi and Lois Company purchased 12% bonds having a maturity value of $300,000 for $322,744.44. The bonds provi

True [87]

Answer:

a. Prepare the journal entry at the date of the bond purchase.

January 1, 2020, bonds purchased at a premium

Dr Bonds receivable 300,000

Dr Premium on bonds receivable 22,744.44

Cr Cash 322,744.44

b. Prepare a bond amortization schedule.

Date Interest Cash Premium Unamortized Carrying

revenue received amortization premium value

1/1/20 - -322,744.44 - 22,744.44 277,255.56

1/1/21 32,274.44 36,000 3,725.56 19,018.88 280,981.12

1/1/22 31,901.89 36,000 4,098.11 14,920.77 285,079.23

1/1/23 31,492.08 36,000 4,507.92 10,412.85 289,587.15

1/1/24 31,041.23 36,000 4,958.77 5,454.08 294,545.92

1/1/25 30,545.92 336,000 5,454.08 0 0

c. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020.

Dr Interest receivable 36,000

Cr Interest revenue 32,274.44

Cr Premium on bonds receivable 3,725.56

(322,744.44 x 10%) - (300,000 x 12%) = 32,274.44 - 36,000 = 3,725.56

d. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021.

Dr Interest receivable 36,000

Cr Interest revenue 31,901.89

Cr Premium on bonds receivable 4,098.11

(319,018.88 x 10%) - (300,000 x 12%) = 31,901.89 - 36,000 = 4,098.11

amortization year 3:

(314,920.77 x 10%) - (300,000 x 12%) = 31,492.08 - 36,000 = 4,507.92

amortization year 4:

(310,412.85 x 10%) - (300,000 x 12%) = 31,041.23 - 36,000 = 4,958.77

amortization year 5:

5,454.08

3 0

2 years ago