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kobusy [5.1K]
3 years ago
11

During its first year of operations, Crane Company had credit sales of $3,531,400; $664,000 remained uncollected at year-end. Th

e credit manager estimates that $36,000 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectible. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Business
1 answer:
Vinvika [58]3 years ago
7 0

Answer:

Bad debt expense...................Dr       $36,000

            Allowance for doubtful debts                $36,000

(To record uncollectibles)

Explanation:

Certain amount of credit sales that the manager estimates to be uncollectible is called bad debts. They are written off at the end of the year. As per allowance method, estimated uncollectibles or bad debts are charged to allowance for doubtful debts.

Here, $36,000 has been estimated by the manager as estimated uncollectible

Journal entry to record uncollectibles:

Particulars                              Debit                Credit

Bad debt expense                   $36,000

       Allowance for doubtful debts                    $36,000

(To record uncollectibles)

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Answer:

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Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per hour = (High Operating cost - low operating cost) ÷ (High service hours - low service hours)

= ($11,200 - $4,300) ÷ (420 hours - 120 hours)

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Now the fixed cost equal to

= High operating cost - (High service hours × Variable cost per hour)

= $11,200 - (420 hours × $23)

= $11,200 - $9,660

= $1,540

For computing the contribution margin per hour, first we have to compute the revenue per hour which is shown below:

= Revenue ÷ service hours

= $6,000 ÷ 120 hours

= $50

We know that,

The contribution per hour = Revenue per hour - variable cost per hour

                                           = $50 - $23

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3 years ago
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gulaghasi [49]

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What is an accurate description of money market instruments?

A variety of securities, such as short-term Treasury securities (such as T-bills), certificates of deposit (CDs), commercial paper, repurchase agreements (repos), and money market mutual funds that invest in these securities make up the money market.

Is it a certificate of deposit security?

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The correct question is:

Choose the correct description for the following money market instrument.

Upper A certificate of deposit is a certificate of deposit is​:

A.

a short dash term debt instrument issued by large banks and well dash known corporations. A short-term debt instrument issued by large banks and well-known corporations. nothing

B.

an overnight loan between banks.an overnight loan between banks.

C.

a debt instrument sold by a bank to depositors that pays annual interest on a given amount and a maturity pays back debt instrument sold by a bank to depositors that pays annual interest on a given amount and at maturity pays back the original purchase price. the original purchase price.

D.

a short dash term money market instrument issued primarily by banks and funded from corporations and a short-term money market instrument issued primarily by banks and funded from corporations and other banks through loans in which Treasury bills serve as collateral comma with an explicit agreement to pay off the debt other banks through loans in which Treasury bills serve as collateral, with an explicit agreement to pay off the debt shortly.

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Answer:

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