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Grace [21]
3 years ago
6

Charleston, Inc. has Accounts Receivable of $280,000 and an Allowance for Doubtful Accounts of $18,000. If it writes-off a custo

mer account balance of $1,800, what is the amount of its net accounts receivable?
Business
2 answers:
hammer [34]3 years ago
6 0

Answer: $262,000

Explanation:

The Net Accounts Receivables refers to the amount that the customers of the company purchased on credit.

The Allowance for Doubtful Debt Account is the amount that's the company estimates it will not receive from it's credit customers so as to cater for the risk that some won't pay.

Net Accounts Receivables is therefore calculated by removing the Allowance for Doubtful Debt from the Accounts Receivables.

= Gross Accounts receivable - Allowance for Doubtful Accounts

= 280,000 - 18,000

= $262,000

It is worthy of note that the Customer balance written off of $1,800 will not be taken from the Accounts Receivables Account because it has already been catered for in the Allowance for Doubtful Debts. It will therefore be removed from the Allowance for Doubtful Debt Account.

Olegator [25]3 years ago
3 0

Answer:

$262,000

Explanation:

Allowance for Doubtful Accounts is deducted from the receivable balance on the balance sheet and shown as a deduction. As this is an contra account receivable account, which has a negative balance according to the account receivables balance. The value reported on the balance sheet is net of Allowance for Doubtful Account balance.

Journal Entry for Write off

Dr. Allowance for Doubtful Accounts $1,800

Cr. Account Receivable                       $1,800

Debit in Allowance for Doubtful Accounts and Credit in Account Receivables account will reduce their balances.

Allowance for Doubtful Accounts balance = $18,000 - $1,800 = $16,200

Account Receivable = $280,000 - $1,800 = $278,200

Net Account receivable = $278,200 - $16,200 = $262,000

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alexdok [17]

Answer:

PV= $8,447

Explanation:

Giving the following information:

Future value= $13,000

Number of months= 9*12= 108

Interest rate= 0.4/100= 0.004 compounded montlhy

To calculate the initial investment required, we need to use the following formula:

PV= FV/(1+i)^n

PV= 13,000/(1.004^108)

PV= $8,447

7 0
3 years ago
Wisconsin Farm Equipment Company sold equipment for cash. The income statement shows a loss on the sale of $ 10 comma 000. The n
tester [92]

Answer:

A. positive cash flow of $ 20 comma 900 from investing activities

Explanation:

book value - sales price = loss on sale

30,900 - sales price = 10,000

30,900 - 10,000 = sales price

sales price = 20,900

Assumming the purchase was on cash, it will be disclosure as cash generated from investing activities for 20,900

The reason is that cashflow do not focus on the gain or loss from the sale. It focus on the cash movements and this sale involve a cashinflow of 20,900

3 0
3 years ago
As the owner of a party store, you have decided to lower the price for all balloons this month. What do you expect to happen?
Ulleksa [173]

Answer:

Quantity demanded for balloons will increase.

Explanation:

According to the law of demand, there is an inverse relationship between the price of the commodity and the quantity demanded for that commodity.

This means that if there is an increase in the price of a good then as a result the quantity demanded for that good decreases and on the other hand if there is a fall in the price of a good then as a result the quantity demanded for that good increases.

Therefore,

Fall in the price of balloons will lead to increase the quantity demanded for balloons.

3 0
3 years ago
1. Which of the following is NOT a reason why employees lose their jobs?
stich3 [128]

Answer:B. Good attendance

Explanation: Employers want their employees to have good attendance, this is a good quality, it is NOT a reason why employees lose their jobs.

4 0
3 years ago
an audit manager) has been assigned to the audit of Tandem Electric, Inc. Dorothy is concerned that Joanne, a friend from her co
zhannawk [14.2K]
I thought it would be B. Because if she is doing audit and knows someone in the company that is helping with the audit, she is NOT legally able to do the audit! That is what I learned in accounting anyway. I am not sure though just an input.I would pick B.
6 0
3 years ago
Read 2 more answers
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