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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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Paraguay’s economy is afflicted by poverty and an absence of opportunities and advantages. However, a positive aspect of this si
Art [367]

Paraguay's economy is afflicted by poverty and an absence of opportunities and advantages. However, a positive aspect of this situation is none.

The economy of Paraguay is a market financial system that is distinctly depending on agriculture products. In latest years, Paraguay's economic system has grown because of improved agricultural exports, especially soybeans. Paraguay has the monetary benefits of a young population and great hydroelectric energy.

Paraguay has been one of the poorest and most unequal nations at the continent for a long term. the total poverty rate — defined by using the world financial institution as those with an income of much less than $3.10 a day — in Paraguay rose in 2016 from 26.6 percent to 28.8 percent.

Learn more about economy here: brainly.com/question/2824360

#SPJ4

7 0
1 year ago
An _______ is an activity to get you thinking about your project including your role, the challenge and objectives. Question 4 o
butalik [34]

Answer:

obstacle course

Explanation:

An obstacle course helps your mind to focus on your project or activities and gets your thought process going.

5 0
3 years ago
In January 2012, one US dollar was worth 50 Indian rupees. Suppose that over the next year the value of the Indian rupee decreas
satela [25.4K]

Answer:

59% - a)increase - b)decrease

Explanation:

First of all, we should say that the real exchange rate is calculated by multiplying the nominal exchange rate for the price index and then divide it by the price index of the other country. In another language, using this case as the example, the first nominal exchange rate is 50, as you need 50 rupees to buy 1 dollar. So to calculate the real exchange rate you need to multiply 50 by 100 (the price index of USA) and then divide it by 100 (the price index of India). Note that both price indexes are 100, just a coincidence for making easier the question. Result: 50.

Then we calculate the next real exchange rate: multiply 60 (the new nominal exchange rate) by 106 (the new US price index) and divide by 80 (the new India price index). This throws a result of 79,5. We see a 29,5 increase, and 29,5 represents 59% of 50 (the initial real exchange rate).

Then both questions is more common sense than the reading of the results we just calculated. For example, nominal exchange rate changed from 50 to 60, so the people in India will now have to collect 10 more rupees to buy the same dollar. Let's suppose a pair of shoes in USA costs 40 dollars. Before, Indians needed 2000 rupees to buy it. Now they will need 2400 rupees... it will be more expensive. Plus, the prices of USA had gone up 6%, which means the pair of shoes will now cost 42,4 dollars... even more expensive! As products in USA are more expensive, we can expect that India's consumption of American goods will decrease (law of demand).

With the American consumption of Indian goods happens the opposite, the goods in India became cheaper (price index has fallen), and for the Americans, the same dollars they had will buy more rupees when the exchange rate changed to 60.

3 0
3 years ago
What kinds of business transactions are NOT summarized in a sole proprietor's books? A. Credits. B. Expenses or deductions. C. G
yan [13]

Answer:

D. Sole proprietor's wages.

Explanation:

The owner of the business is the sole proprietor on the other hand sole proprietor is not an employee. Therefore he receives no salaries as he is the person who is an owner of any company or an organization. Any sum he takes from the company is considered to be withdrawn amount.

Hence, Sole Proprietor's wages are not listed in the ledger of the sole proprietor. So, the correct answer is D.

4 0
3 years ago
Vert Company purchased Dextrin common stock for $150,000. At December 31, Year 2, the Fair value adjustment account had a debit
VashaNatasha [74]

Answer:

B. Credit to the fair value adjustment for $6000

Explanation:

December 31 (year 2)

Fair value adjustment account balance = $10,000 (Debit)

December 31 (year 3)

Fair value adjustment account balance = $154,000 - $150,000 =$4,000 (Debit)

As you can see in year 2 there were only $10,000 (debit) in fair value adjustment account but in year 3 the value dropped down to 4,000 debit which leads us to the journal entry of $6,000 Credit in fair value adjustment account balance

7 0
3 years ago
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