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iragen [17]
3 years ago
15

Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded

only at December 31, the company’s fiscal year-end. The 2020 balance sheet disclosed the following:
Current assets:
Receivables, net of allowance for uncollectible accounts of $36,000 $ 462,000


During 2021, credit sales were $1,780,000, cash collections from customers $1,860,000, and $41,000 in accounts receivable were written off. In addition, $3,600 was collected from a customer whose account was written off in 2020. An aging of accounts receivable at December 31, 2021, reveals the following:

Percentage of Year-End Percent
Age Group Receivables in Group Uncollectible
0−60 days 70% 5%
61−90 days 20 15
91−120 days 5 20
Over 120 days 5 40

Prepare summary journal entries to account for the 2021 write-offs and the collection of the receivable previously written off.
Business
1 answer:
Sedaia [141]3 years ago
5 0

Journal entries

Dr Allowance for uncollectible account $41,000

Cr Account Receivable $41,000

Dr Account receivable $3,600

Cr Allowance for uncollectible account $3,600

Dr Cash $3,600

Cr Account receivable $3,600

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vivado [14]

Answer:

A. True

Explanation:

For accepting the payment by credit card or by debit card, the online merchant i.e online seller by whom the individual buys the products online.

The online merchant has an agreement with the merchant account and the bank or financial institution so that the individual can able to pay the amount through online mode to the online merchant and in the same time, the amount is deducted from the individual bank account after placing the order

7 0
3 years ago
Henry conducted a survey on an ad done by his company. In the survey, he asked people to evaluate the ad and state whether they
defon

Answer:

C. rating scale test.

Explanation:

In a rating scale test, respondents are asked by researchers to rate either their products, services, or work on a scale, say one to ten. This type of test is used by researchers when they want respondents to place value on the features,products,service as contained in the questionnaire.

This type of test is also used to assess performance of employees, products,services etc inorder to achieve a particular goal.

Rating scale is also used to get more information about comparisons between two values hence an important survey method.

3 0
3 years ago
You can save $1,000 per year for the next six years in an account earning 10 percent per year. How much will you have at the end
kicyunya [14]

Answer:

At the end of the sixth year, you will have:

= $8,487.17.

Explanation:

a) Data and Calculations:

Annual savings = $1,000

Interest rate per year = 10%

Period of savings = 6 years

First deposit = today

From an online financial calculator:

N (# of periods)  6

I/Y (Interest per year)  10

PV (Present Value)  0

PMT (Periodic Payment)  1000

 

Results

FV = $8,487.17

Sum of all periodic payments $6,000.00

Total Interest $2,487.17

8 0
3 years ago
For 2014, Taxpayer (TP) wants to recognize a deduction. The deduction involves a statute that has not changed since enacted in 1
Vesna [10]

Answer:

Option c. is correct

Explanation:

Under the Golsen rule, the Tax Court must follows the Court of Appeals such that the court of appeals has direct jurisdiction over the taxpayer. The Court is said to reach a decision without calculating the tax when a Tax Court decision is said to be entered under Rule 155.

In this question, The Golsen rule applies here and weakens the legal justification for the deduction

4 0
3 years ago
An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement F
yawa3891 [41]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is 0.84 or 84 %

Explanation:

Contribution Margin = Contribution ÷ Sales

Where,

<em>Contribution = Sales - Variable Costs</em>

where,

Sales :

Sales = $ 900,000

Number of Books Sold = $ 900,000 ÷ $50

                                      = 18,000 books

Variable Costs Calculation :

Cost of goods sold                                                           $630,000

Variable selling expenses ($5 × 18,000 books)               $90,000

Variable administrative expenses( 4% × $ 900,000)       $36,000

Total Variable Costs                                                         $756,000

Therefore,

Contribution Margin =  $756,000÷  $ 900,000

                                  = 0.84 or 84 %

7 0
3 years ago
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