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SOVA2 [1]
3 years ago
7

During the current year, Robby’s Camera Shop had sales revenue of $169,000, of which $68,000 was on credit. At the start of the

current year, Accounts Receivable showed a $21,000 debit balance and the Allowance for Doubtful Accounts showed a $1,600 credit balance. Collections of accounts receivable during the current year amounted to $51,000.
Data during the current year follows:

(a) On December 31 an Account Receivable (J. Doe) of $1,100 from a prior year was determined to be uncollectible; therefore, it was written off immediately as a bad debt.
(b) On December 31, on the basis of experience, a decision was made to continue the accounting policy of basing estimated bad debt losses on 3.0 percent of credit sales for the year.

Prepare the required journal entries for the two items on December 31, end of the accounting period.
Business
1 answer:
Mnenie [13.5K]3 years ago
6 0

Answer:

write-off:

allowance for doubtful accounts   1,100 debit

                        accounts receivable                1,100 credit

--to record write-off  J.Doe Account--

bad debt expense        2,040 debit

        allowance for doubtful accounts 2,040 credit

--to adjust for bad debt expense--

Explanation:

The write-off will decrease both, the allowance and accounts receivable. No expense is recognize when performing write-off.

<u>Bad debt expense for the year:</u>

credit sales x expected bad debt

    68,000   x              3%                 = 2,040

As is determined from sales, we adjust for the whole amount.

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The answer would be A. Shoes.

It is implied that a good has an inelastic supply if the supplier does not have a choice other than producing it despite the change in production cost. This would as well apply to the buyer, who needs the product no matter the pricing.No one can live without shoes, despite a spike in prices, we still need to buy them.
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BD Corporation has purchased new computers to modernize the office. The increased efficiency from the computers will lead to inc
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Answer:

BD Corporation should not purchase the new computers

Explanation:

initial outlay year 0 = -$300,000

increased productivity per year = $75,000 for years 1-5

discount rate = 8%

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5 0
3 years ago
You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use
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Answer:

1. In option (a), the dealer would charge $18,213.54.

b. In present value terms, the one-time payment (option (b) is a better deal for the purchaser.

Explanation:

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Monthly payment for a used car = $620

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Additional payment at the end of 20 months = $12,000

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From an online financial calculator, the present value of the payments is:

N (# of periods)  20

I/Y (Interest per year)  24

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2 years ago
Uh is edge supposed to have blank sections? Proof is below!
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Answer:

nope as long as I remember

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<h3>What is Child Tax Credit?</h3>

Different nations offer parents with dependent children a tax advantage known as the child tax credit (CTC). The credit is frequently correlated with the number of dependent children a taxpayer has, as well as occasionally with their income. For instance, only families in the United States who earn less than $400,000 year are eligible to get the entire CTC. Similar to the United States, only families earning less than £42,000 a year are eligible for the tax credit in the United Kingdom.

The federal child tax credit (CTC) in the United States is a tax credit that is only partially refundable for parents of dependent children. Subject to an earned income level and phase-in, it offers $2,000 in tax relief per eligible kid (with up to $1,400 of that amount being refundable).

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