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cricket20 [7]
3 years ago
6

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $632,338 and Allo

wance for Doubtful Accounts has a balance of $18,648. What is the net realizable value of the accounts receivable?
Business
1 answer:
rewona [7]3 years ago
3 0

Answer:

The net realizable value of the accounts receivable amounts to $613,690

Explanation:

NRV stands for Net Realizable value, which is defined as the cash amount that the firm expects to receive.

The net realizable value of the accounts receivable is computed as:

Net realizable value of the accounts receivable = Balance of Accounts Receivable - Allowance for Doubtful Accounts

where

Balance of Accounts Receivable amounts to $632,338

Allowance for Doubtful Accounts amounts to $18,648

Putting the values above:

Net realizable value of the accounts receivable = $632,338 - $18,648

Net realizable value of the accounts receivable = $613,690

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Tempest Co. purchased 60, 6% Ulrich Company bonds for $60,000 cash. Interest is payable semiannually on July 1 and January 1. If
PolarNik [594]

Answer:

The correct answer is option (a).

Explanation:

According to the scenario, the given data are as follows:

Purchase Bonds = 60

Purchased bonds value = $60,000

So Purchased value of 30 bonds = $60,000 ÷ 2  = $30,000

Sold 30 bonds at value = $32,000

So, we can calculate the gain on sale by using following formula:

Gain on sale = Sold 30 bonds at value - Purchased value of 30 bonds

By putting the value, we get

= $32,000 - $30,000

= $2,000

7 0
3 years ago
A monopoly is producing output so that the average total cost is $30, marginal revenue is $40, and the price is $50.
Len [333]

Answer:

B

Explanation:

In this question, we are asked to pick from the options what should serve as the point of action of the firm given the scenario painted in the question;

We proceed as follows;

ATC= 30 $

Marginal revenue(MR)= 40 $

Price(P) =50 $

For efficiency,MC=minimum ATC=30 $

MR =40 > MC=30

For profit maximization, MR =MC

So, firm should raise output ,so that MR falls and becomes equal to MC

So correct option is B.

4 0
3 years ago
Read 2 more answers
For which buyer would a lender most likely approve a $200,000 mortgage?
jolli1 [7]
I think the answer is B: a person with a credit score of 760 with a small amount of debt who has had steady employment for many years. 

5 0
3 years ago
Read 2 more answers
The cash account for American Medical Co. at April 30 indicated a balance of $334,985. The bank statement indicated a balance of
Bas_tet [7]

Answer:

1. Cash balance according to bank statement $370,000

Cash balance according to company’s records $370,000

2. a. April 30

Dr Cash $42,000

Cr Notes Receivable $40,000

Cr Interest Income / Interest Revenue $2,000

b. April 30

Dr Accounts Payable - Targhee Supply Co $6,840

Dr Miscellaneous Expenses [Bank service charge] $145

Cr Cash $6,985

3. $370,000

Explanation:

1. Preparation of a bank reconciliation

AMERICAN MEDICAL COMPANY

Bank Reconciliation

April 30

Cash balance according to bank statement $388,600

Add: Deposit of April 30, Not recorded by bank $42,500

Add: Bank Error in Charging check as $420 instead of $240 [$420 - $240] $180

Deduct: Outstanding Checks $61,280

Adjusted balance $370,000

Cash balance according to company’s records $334,985

Add: Note and Interest Collected by bank $42,000

Deduct: Error in Recording Check [$7,600 - $760] $6,840

Deduct: Bank Service Charges $145

Adjusted balance $370,000

2. Preparation of Journal entries.

Journal entries

a. April 30

Dr Cash $42,000

Cr Notes Receivable $40,000

Cr Interest Income / Interest Revenue $2,000

b. April 30

Dr Accounts Payable - Targhee Supply Co [$7,600 - $760] $6,840

Dr Miscellaneous Expenses [Bank service charge] $145

Cr Cash $6,985

($6,840+$145)

3. Based on the information given If a balance sheet is prepared for American Medical Co. on April 30, the amount that should be reported as cash will be $370,000

8 0
2 years ago
Um Corporation has provided the following information concerning its raw materials purchases. The budgeted cost of raw materials
Zepler [3.9K]

Answer:

$171,619.20

Explanation:

Calculation to determine what The budgeted accounts payable balance at the end of November is closest to:

Using this formula

Budgeted accounts payable balance= Budgeted cost of raw materials purchases in November -(Budgeted cost of raw materials purchases in November*Raw materials purchases in the month of purchase percentage)

Let plug in the formula

Budgeted accounts payable balance=$286,032 - ($286,032*40%)

Budgeted accounts payable balance=$286,032 - $114,412.80

Budgeted accounts payable balance= $171,619.20

Therefore The budgeted accounts payable balance at the end of November is closest to:$171,619.20

4 0
3 years ago
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