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Grace [21]
2 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]2 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]2 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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dmitriy555 [2]

Answer:

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Explanation:

employee monitoring is software, time clocks, video surveillance, GPS systems and biometric technology .the answer most likely c.

7 0
3 years ago
Using the standard 28/36 guidelines, if the maximum monthly mortgage payment allowed for someone applying for a home loan is $1,
patriot [66]

Answer:

Answer to this question is b.46500

Explanation:

According to 28/36 guidelines, a household shall not spend more than 28% of its monthly income on housing expenses.

Applying the above rule, the monthly income of a household shall be calculated as follows:

28% x household monthly income=1085$

household monthly income=1085/28%=3875

Annual household income=3875 x 12=46500

Answer to this question is b.46500

5 0
2 years ago
Read 2 more answers
Regency Inn leased a rental office in the lobby of its hotel to Americar, a car rental agency. Wagner rented a car from Americar
WINSTONCH [101]

Answer:

The court ruled against both Americar and Regency Inn, and then Regency Inn won its case against Americar. The nuisance case itself is pretty unpleasant, so it's not worth referring to it.

The fundamentals for the ruling against Americar were that they themselves had drafted the lease agreement and that the clause included in the lease agreement by which they agreed to indemnify Regency Inn was valid. The original lease term had already expired, but Americar continued to lease the offices on a monthly basis. Since they never left the place, the clauses in the original agreement were still valid even though the lease changed to a monthly basis. I.e. if you sign a lease contract and after the original contract is over, you continue to lease the same place, then the clauses from the original contract still apply.

The clause stated that Americar was liable for damages that took place on the leased premises or in their proximity, i.e. the area near their offices. The parking lot was considered to be in the proximity of Americar's offices.

3 0
3 years ago
You are trying to choose between two stocks, Widget and Gadget. Widget has a current stock price of $30 and earnings per share o
gizmo_the_mogwai [7]

Answer:

Gadget will have higher earning.

Explanation:

Price Earning Ratio is the ratio of Market price to the earning per share. PE Ratio measure the effect of earning over the market price of the company.

Widget

Stock Price = $30

Earning per share = $2

PE ratio = $30 / $2 = 15 times

Gadget

Stock Price = $30

Earning per share = $2

PE ratio = $20 / $1 = 20 times

Gadget will have higher earning.

7 0
2 years ago
The law of increasing opportunity costs is reflected in a production possibilities curve that is: A. an upsloping straight line.
AnnyKZ [126]

The law of increasing opportunity costs is reflected in a production possibilities curve that is concave to the origin.

4 0
3 years ago
Read 2 more answers
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