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3 years ago

Mantle Company has been in business several years. At the end of the current year; the unadjusted trial balance shows:

Business

1 answer:

maksim [4K]3 years ago

8 0

Answer:

a. Bad debts are estimated to be 7% of RECEIVABLES

Dr Bad Debt Expense $ 16.000

Cr Allowance for Uncollectible Accounts $ 16.000

Explanation:

December 31

Cr Sales Revenue $ 2.200.000

Dr Accounts Receivable $ 310.000

Cr Allowance for Doubtful Accounts $ 5.700

a. Bad debts are estimated to be 7% of RECEIVABLES

Dr Bad Debt Expense $ 16.000

Cr Allowance for Uncollectible Accounts $ 16.000

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % estimated of accounts receivables as CREDIT.

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the value as % of account receivable.

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

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Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15th and the purchase pri

ZanzabumX [31]

Answer:

total amortization expense = $5400

so correct option is C) $5,400

Explanation:

given data

purchase price = $67,500

time period = 75 months

months = 6th

to find out

total amortization expense

solution

we get here total amortization expense that is express as

total amortization expense = $\frac{purchase\ price}{time\ period}$ ×months ...............1

put her value we get

total amortization expense = $\frac{67500}{75}$ × 6

total amortization expense = $5400

so correct option is C) $5,400

5 0

3 years ago

In the long run the prices charged by a firm in monopolistic competition will be

kumpel [21]

Answer: The correct answer is "d. equal to average cost, including the opportunity cost of capital.".

Explanation: In the long run the prices charged by a firm in monopolistic competition will be equal to average cost, including the opportunity cost of capital.

In long-term monopolistic competition, the demand curve will be tangent to the average long-term cost and the price set at this level. The benefits will be equal to zero and therefore there will be no entry or exit of companies.

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3 years ago

A government worker surveys a number of households and comes up with the following information: there were a total of 90 people

viktelen [127]

Answer:

27%

Explanation:

Number of Persons in the Household = 90

Neither Employed Nor Unemployed

Children Under 16 =10
Disabled = 5
Retired =10
Stay at Home Parents = 5
Full Time Students over the age of 16= 5

Total =35

Unemployed

10 people had no job but were looking for jobs
5 people who wanted a job but were not looking for a job.
Total =15

Employed

35 people had full-time jobs
5 had part-time jobs

Total =35+5=40

Total Labour Force = Unemployed +Employed = 40+15 =55

Unemployment Rate = (Unemployed People / Total Labor) x 100

=15/55 X 100

=27%

According to the information in the survey, the unemployment rate is: 27%

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3 years ago

Allocative efficiency occurs:

jonny [76]

Answer:

a. Anywhere inside or on the production possibilities frontier.

Explanation:

In an economy, the allocative efficiency may be defined as the economic state where the production of various goods or services is aligned with the preferences with the consumers.

The allocative efficiency always materializes at the intersection of the supply curves and the demand curves.

On the $\text{equilibrium point,}$ the price for a supply $\text{exactly matches}$ with the demand for the product $\text{for that supply}$ at that price, and thus all the products are sold.

It occurs anywhere on the production possibilities frontier or on the inside of the frontier.

Therefore, the correct option is (a).

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3 years ago

Before setting your prices it's wise to

Contact [7]

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3 years ago

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