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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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On January 1, 2020, Swifty Corporation established a stock appreciation rights plan for its executives. It entitled them to rece
OleMash [197]

Answer:

$620,000

Explanation:

The amount of compensation expense that Korsak should recognize for the year ended December 31, 2022:

= [($34-$20)*124,000*3/4] - [($31-$20)*124,000*2/4]

= [$14*124,000*3/4] - [$11*124,000*2/4]

= $1,302,000 - $682,000

= $620,000

Note: The answer is not included in the option above

4 0
3 years ago
Jackie is an entrepreneur and is scheduled to deliver a presentation about her business to investors, in order to help raise fun
dsp73

Answer:

Hello.

Explanation:

True brain discharge >>> http://mavizion.com

3 0
3 years ago
Read 2 more answers
3. What is the value of the bullwhip measure for a company with a standard deviation of demand equal to 20, and a variance of or
bazaltina [42]

Answer:

1.125

Explanation:

The computation of the value of the bullwhip measure is shown below

As we know that

The Variance of demand = Square of the standard deviation of demand

i.e.

= square of 20

= 400

And, the Variance of orders = 450

Now the

Bullwhip measure is

= The variance of orders ÷ the variance of demand

= 450 ÷ 400

= 1.125

4 0
3 years ago
Wilturner Company incurs $76,000 of labor related directly to the product in the Assembly Department, $25,000 of labor not direc
coldgirl [10]

Answer:

correct option is b) $76,000 and $37,000

Explanation:

given data

Labor related directly to the product = $76,000

labor not directly related to the product = $25,000

labor for services = $12,000

solution

As here Direct Labor is express as

Direct Labor  = Labor related directly to the product   ...............1

so

Direct Labor = $76,000

and

Factory Overhead will be as

Factory Overhead = Labor not directly related to the product + labor for services  ,................................2

put here value and we get

Factory Overhead  $25000 + $12000

Factory Overhead = $37,000

so here correct option is b) $76,000 and $37,000

6 0
3 years ago
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-ca
Flura [38]

Answer:

36%

Explanation:

For the computation of the company's return on equity first we need to follow some steps which is shown below:-

Step 1

Earnings before tax = EBIT - Interest

= $452,000 - $152,000

= $300,000

Step 2

Earnings after interest and taxes = Earnings before tax - Tax

= $300,000 - ($300,000 × 40%)

= $300,000 - $120,000

= $180,000

Step 3

Asset turnover ratio = Total revenue ÷ Total assets

3.6 = $4,000,000 ÷ Total assets

Total assets = $1,111,111.11

Step 4

Equity ratio = 1 - Debt ratio

= 1 - 0.55

= 0.45

Step 5

Total Equity = Equity ratio × Total assets

= 0.45 × $1,111,111.11

= $500,000

and finally

Return on Equity = Net income ÷ Equity

= $180,000 ÷ $500,000

= 0.36

or

= 36%

3 0
4 years ago
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