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Licemer1 [7]
3 years ago
8

Using the aging method of accounts receivable method, $5,000 of the company's Accounts Receivable are estimated to be uncollecti

ble. At the end of the year, the balance of Accounts Receivable is $100,000 and the unadjusted credit balance of the Allowance for Doubtful Accounts is $500. Credit sales during the year totaled $150,000. What is the current year's Bad Debt Expense?
Business
1 answer:
gogolik [260]3 years ago
6 0

Answer:

The correct answer is $4,500.

Explanation:

According to the scenario, the given data are as follows:

Uncollectible Account receivable = $5,000

Account receivable balance = $100,000

Allowance for Doubtful Accounts = $500

Credit sales = $150,000

So, we can calculate the bad debt expense by using following formula:

Bad debt expense = Uncollectible Account receivable - Allowance for Doubtful Accounts

by putting the value, we get

Bad debt expense = $5,000 - $500

= $4,500.

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On January 5, 2020, Sheffield Corporation received a charter granting the right to issue 5,100 shares of $100 par value, 7% cumu
andrew11 [14]

Answer:

 Sheffield Corporation

Journal Entries

Date             Description                              DR                           CR

Jan 11         Cash                                       292,500

                 Common stock                                                     195,000

                 Paid in Capital for common stock                         97,500

               

              <em>Being the amount received on issue of </em>

<em>              </em>

Feb 11     Equipment                                   53,300

              Factory Building                          152,000

              Land                                             295,000

             Prefereed stock                                                     410,000

             Paid -in -capital for Preferred stock                        90,300

July 29   Treasury stock                              25,600

              Cash                                                                            25,600

            Being the payment of own share purchased

Aug 10    Cash                                                   22,400

                Retained Earnings                               3,200

               Treasury stock                                                      25,600

 

Dec 31       Retained  earnings                              10,025

                 Dividend(0.35*19500)                                            6,825  

                 Treasury stock                                                         3,200  

Dec 31       Net Income ( Income Summary)      158,400

                  Retained Earnings                                               158,400

Balance sheet as at Dec 31

Equity

Common stock at $10 par value                                      $195,000

7% Preferred Stock                                                            410,000

Paid in capital for common stock                                        97,500

Paid in capital for Preferred stock                                        90,300

Retained Earnings ( 158,400-6825-3200)                         <u> 148,375</u>

                                                                                             <u>  941,175</u>

Explanation:

4 0
3 years ago
Who sets guidelines for the exemption as it applies to earnings?
Sever21 [200]

The annual exempt amount applies to the earnings of each non-grace taxable year prior to the year of full retirement age, as defined

6 0
2 years ago
A state constructs an office building. The construction is financed with: (1) a transfer of $1 million from the General Fund; (2
Zolol [24]

Answer:

$8 million

Explanation:

There are total 4 sources involved.

But the government grants are reduced from the cost of the the project. It is not recorded as other financing sources.

Also the earnings from bond proceeds shall not be considered for the other financing sources, as that is mere use of income.

Use of general fund in these capital projects will account for such other financing sources.

Cash received from issue of bonds for this project will also account for such capital fund.

Thus, total other financing sources = $1 million + $7 million = $8 million

4 0
2 years ago
Dave's boss told him that he doesn't have to attend the company picnic (which everybody dislikes) if dave meets his sales quota
astraxan [27]
The answer is negative reinforcement. It is a word termed by B. F. Skinner in his theory of operant conditioning. In negative reinforcement, a reaction or performance is reinforced by ending, eliminating or evading a negative consequence or aversive provocation.
8 0
3 years ago
Winterbourne is considering a takeover of Monkton Inc. Winterbourne has 18 million shares outstanding, which sell for $56 each.
Whitepunk [10]

Answer:

Price of per share to be paid by Winterbourne to Monkton shareholders  =$ 33 M

Explanation:

Before merger the netwoth  = No.of shares * Price

= 13M * $ 28

= $ 364 M

Price of per share to be paid by Winterbourne to Monkton shareholders  = [ Net worth of Monkton before Merger + Merger Gain ] / No.of Shares

= [ $ 364 M + $ 65 M ] / 13 M

= $ 33 M /

4 0
2 years ago
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