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Marrrta [24]
2 years ago
12

At year-end (December 31), Chan Company estimates its bad debts as 0.70% of its annual credit sales of $672,000. Chan records it

s Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $336 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.
Required:
a. Prepare the journal entries for these transactions.1. Record the estimated bad debts expense.2. Record the entry to write off P. Park's account as uncollectible.3. Record the reinstatement of Park's previously written off account.4. Record the cash received on account.
Business
1 answer:
pshichka [43]2 years ago
5 0

Answer and Explanation:

The journal entries are shown below

As per the data given in the question,

Journal entries:

On Dec-31

Bad debt expense A/c Dr. $4,704     (0.007 × $672,000)

       To Allowances for doubtful account Cr.  $4,704

(Being the bad debt expense is recorded)

On Feb-01

Allowances for doubtful account Dr. $336

     To Accounts receivable P. Park Cr. $336

(Being the allowance is recorded)

On Jun-05

Accounts receivable P. Park A/c Dr. $336

Allowances for doubtful account Cr. $336

(Being the reinstatement is recorded)

On Jun-05

Cash A/c Dr. $336

           To Accounts receivable P. Park Cr.  $336

(Being the cash received on account is recorded)

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8. When Jill Thompson received a large settlement from an automobile accident,
Dennis_Churaev [7]

Answer:

The amount of fees that Jill will pay this year=$248.20

Explanation:

Expense ratio is a measure of how much fees that fund management firms charge their clients for their investments services. These fees cover administrative and operational costs. In our case, the expense ratio will be expressed as the fees that Jill will pay as a portion of the total amount she invested. The expense ratio can be expressed as shown;

ER=C/A

where;

ER=expense ratio

C=total funds cost

A=total funds assets

In our case;

ER=0.17%=0.17/100=0.0017

C=unknown to be determined

A=$146,000

replacing;

C=ER×A

C=0.0017×146,000=$248.20

The amount of fees that Jill will pay this year=$248.20

3 0
3 years ago
The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance. a.
Ira Lisetskai [31]

Answer:

FALSE

Explanation:

A person is considered unemployed if he / she does not have a job and has searched for a job within the last 4 weeks

Unemployment rate = (number of unemployed / labour force) x 100

To collect data on unemployment, The Bureau of Labor Statistics conducts a survey every month known as the Current Population Survey (CPS).

types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.  

The geologist lost his hob permanently due to increase in wages (polices)

Frictional unemployment:  the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom  

6 0
3 years ago
Consider the following data: currency (held outside banks) = $354 billion, checkable deposits = $250 billion, traveler's checks
Agata [3.3K]

Answer:

a). M1=$808 billion

b). M2=1,068 billion

Explanation:

M1 is the money supply that is the most liquid and is or can be easily converted into cash. The formula for calculating M1 is;

M1=C+D+T+S

where;

M1=money supply

C=currency held outside banks

D=checkable deposits

T=traveler's checks

S=small-denomination time deposits

In our case;

M1=unknown

C=$354 billion

D=$250 billion

T=$4 billion

S=$200 billion

replacing;

M1=(354+250+4+200)=$808 billion

M1=$808 billion

M2 includes elements of M1 and additional  money supply that are near liquid. The formula is;

M2=M1+savings deposit+mutual funds

where;

M1=$808 billion

savings=$100 billion

retail money market mutual funds=$160

replacing;

M2=(808+100+160)=1,068 billion

M2=1,068 billion

5 0
3 years ago
Why has caricom produced limited improvements in interregional trade??
Kobotan [32]

CARICOM or the <span>Caribbean Community and Common Market solely reason for existence is to promote the economic integration to guarantee the benefits and shared equitably. The mainly cause for CARICOM in producing limited improvements is because majority of the English speaking  country illustrates the division </span><span>deep linguistic in Caribbean </span>

3 0
2 years ago
On December 31, 2017, Stellar Company had $1,159,000 of short-term debt in the form of notes payable due February 2, 2018. On Ja
Phoenix [80]

Answer:

Explanation:

Before showing how short term debt should be presented before doing this we have to classify the items in each head

Like - In current liabilities, notes payable is recorded at $11,500  

And, in the long term liabilities, the proceed after brokerage fees for $1,147,500 should be recorded.

The total amount would remain the same i.e $1,159,000  

Kindly find the attachment below:

5 0
3 years ago
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