1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rewona [7]
2 years ago
11

At the beginning of the current period, Teal Mountain Corp. had balances in Accounts Receivable of $211,200 and in Allowance for

Doubtful Accounts of $9,490 (credit). During the period, it had net credit sales of $804,300 and collections of $839,040. It wrote off as uncollectible accounts receivable of $7,902. However, a $3,002 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $22,760 at the end of the period. (Omit cost of goods sold entries.)
(a) Prepare the entries to record sales and collections during the period.

(b) Prepare the entry to record the write-off of uncollectible accounts during the period.

(c) Prepare the entries to record the recovery of the uncollectible account during the period.

(d) Prepare the entry to record bad debt expense for the period.
Business
1 answer:
cupoosta [38]2 years ago
5 0

Answer and Explanation:

The Journal entry is shown below:-

a. Accounts Receivable $804,300    

          To Sales $804,300  

(Being credit is sales recorded)    

Cash Dr, $839,040    

           To Accounts Receivable $839,040  

(Being collection during the period is recorded)

b. Allowance for Doubtful Accounts Dr, $7,902    

             To Accounts Receivable $7,902  

(Being uncollectible accounts are written off is recorded)

c. Accounts Receivable Dr, $3,002    

                To Allowance for Doubtful Accounts $3,002  

(Being to reinstate collected account previously written off is recorded)

Cash Dr, $3,002    

                  To Accounts Receivable $3,002  

(Being collection of previously written off is recorded)

d. Bad Debts Expense Dr, $18,170    

                 To Allowance for Doubtful Accounts $18,170  

(Being adjust allowance for doubtful accounts is recorded)

Working note:-

Allowance for Doubtful Accounts  

                                       Beginning balance $9,490  

Written off       $7,902       Recovery                 $3,002  

                                           Bad debts                $18,170      

                                           Ending balance       $22,760

You might be interested in
Suppose that the risk-free rates in the United States and in the United Kingdom are 4% and 6%, respectively. The spot exchange r
gizmo_the_mogwai [7]

Answer:

The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.

Explanation:

In order to calculate the the futures price of the pound for a one-year contract be to prevent arbitrage opportunities we would have to make the following calculation:

futures price of the pound for a one-year contract=Spot rate*(1+United Kingdom risk free rate)/(1+United States risk free rate)

futures price of the pound for a one-year contract=$1.60/BP*(1+6%)/(1+4%)

futures price of the pound for a one-year contract=$1.63/BP

The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.

4 0
3 years ago
You are buying a laptop and there is two payment plans to consider. Payment plan A is to pay $4,900 now and payment plan B is to
UkoKoshka [18]

Answer: Plan A has a lower present value and should be chosen.

Explanation:

Choose the one that has the lower present value because that means that it would be cheaper.

Present value of plan A = $4,900

Present value of plan B

= $500 + Present value of $210.30 per month for 30 months

$210.30 is constant so it is an annuity.

Periodic interest rate = 24%/12 = 2%

Present value of annuity = Annuity *  ( 1 - (1 + rate)^-number of periods) / rate

= 210.30 *  ( 1 - (1 + 2%)⁻³⁰) / 2%

= $4,709.97

Present value of plan B = 500 + 4,709.97

= $5,209.97

Choose Plan A because it has a lower present value.

6 0
2 years ago
Imagine you are a member of the Academy of Management (ACM) and on the steering committee to choose a location for the organizat
Lelechka [254]

Answer:

I will make of use operations management and the addition of marketing expert to the team will create synergy.

Explanation:

Operations management involves adopting best business practices so as to achieve highest level of efficiency.It emphasizes analyzing different options available in a business where each option based on its peculiarities is accorded a rating and the option with the highest is chosen.

Specifically,operations management can be applied to choosing a location for the annual by following the steps below

All possible locations are identified

Each location is rated based on its pros and cons

The rating is computed using weighted average method

The location with highest rating is chosen for the meeting

On the other hand,strategy is achieving more by combining resources much more than it would been possible to achieve individually.The new marketing expert will be able to provide general marketing guidance to the existing members while they complement the expert with business-specific information.

7 0
3 years ago
The Boot Department at the Omaha Department Store is being considered for closure. The following information relates to boot act
kykrilka [37]

Answer:

Yes, Omaha department store would be better off by $23000.

Explanation:

Given: Sales revenue= $350000.

           Cost of goods sold= $280000.

           Sales commission= $30000.

           Fixed operating cost= $90000.

Now, computing net profit or (loss)

Net profit/loss= \textrm{sales revenue - cost of goods sold- sales\ commission - Avoidable fixed\ operating\ costs}

∴ Net profit/loss= 350000-280000-30000-(90000\times 70\%)

⇒ Net profit/loss= 40000-(63000)= (\$ 23000)

∴ Net loss= \$ 23000

∴ Yes boot department should be closed, as Omaha department store is better off by $23000.

7 0
3 years ago
Nutcracker, Inc has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 u
In-s [12.5K]

Answer:

$35,000

Explanation:

<em>Use the provided cost formula :</em>

Selling and administrative expense = $15,000 + $5y

where,

y is the number of units sold

Therefore,

Selling and administrative expense = $15,000 + $5 x 4,000 units

                                                            = $35,000

5 0
3 years ago
Other questions:
  • Al invested $7,200 in an account that pays 4 percent simple interest. how much money will he have at the end of five years?
    6·1 answer
  • Hershey has traditionally made its Kisses from solid milk chocolate. When Hershey came out with Kisses with almonds in them, thi
    15·1 answer
  • Weismann Co. issued 15-year bonds a year ago at a coupon rate of 4.9 percent. The bonds make semiannual payments and have a par
    6·1 answer
  • Adam, the owner of The Toy Box (a toy store), has chosen his products carefully. They are all handmade of wood; none are cheap g
    9·2 answers
  • Tattletale News Corp. has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to c
    12·1 answer
  • An email message that appears legitimate arrives in your inbox from your bank and asks you to click on a link in the message and
    13·1 answer
  • How do people often buy cars?​
    14·2 answers
  • When japanese plead "uniqueness" and claim that japanese skin is different so foreign cosmetics companies must test their produc
    11·1 answer
  • If scrap, common to all jobs, is returned to the storeroom and the time between the scrap being inventoried and its disposal is
    15·1 answer
  • Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevan
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!