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r-ruslan [8.4K]
3 years ago
6

Multiple Choice Is an outflow of cash from the use of a plant asset. Is applied to land. Measures the decline in market value of

an asset. Measures physical deterioration of an asset. Is the process of allocating the cost of a plant asset to expense.
Business
1 answer:
azamat3 years ago
5 0

Answer:

Is the process of allocating to expense the cost of plant asset.

Explanation:

Depreciation is an expense indicating a decline in the value of the capital assets due to tear and wear, obsolescence, consumption, time span, etc. It's shown on the income statement debit side. It is a non-cash item which has no effect on the cash balance.

Moreover, it is to charged over the specified number of useful life so that proper amount of the depreciation should be recorded in the books of accounts

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Exercise 8-3
7nadin3 [17]

Answer:

(a) Prepare the entries to record sales and collections during the period.

  • It had net credit sales of $800,000  

Dr Accounts receivable $ 800,000

Cr Sales $ 800,000

  • Collections of $763,000.

Dr CASH $ 763,000

Cr Accounts receivable $ 763,000

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

  • It wrote off as uncollectible accounts receivable of $7,300  

Dr Allowance for Uncollectible Accounts $ 7,300

Cr Accounts receivable $ 7,300

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

  • However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period.  

Dr Accounts receivable $ 3,100

Cr Allowance for Uncollectible Accounts $ 3,100

(d) Prepare the entry to record bad debt expense for the period.

  • Uncollectible accounts are estimated to total $25,000 at the end of the period.  

Dr Bad Debt Expense $ 20,200

Cr Allowance for Uncollectible Accounts $ 20,200

Explanation:

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the estimated value of $25,000

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the estimated value, $ 20,200  

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

7 0
3 years ago
How does market research give direction to advertising?
abruzzese [7]

Answer:

it will help you to know what the producer wants

Explanation:

you understand that if you will talk about the product in the market or you will research on what is in the market so you are able to know the idea or you will know what they want in the market,so advertising also give direction to business

8 0
3 years ago
Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly i
Rudik [331]

Answer:

$245,000.00

Explanation:

The amount of sales revenue to be made to achieve target profit is computed as follows:

<em>Sales revenue to achieve target income</em>

<em>= Total fixed cost for the period + target profit/ contribution margin</em>

Contribution margin = (Sales - variable cost) / sales   ×  100

The figure has been given as 40% in the question

Sales revenue to achieve target profit = (83,000 + 15,000)/0.4

$245,000.00

Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income?

Sales revenue to achieve target profit = $245,000.00

8 0
3 years ago
Explain six Differences between private and public company​
elena-s [515]
<h3>Question:</h3>

•explain six Differences between private and public company.

Answer:

•In most cases, a private company is owned by the company's founders, management, or a group of private investors. A public company is a company that has sold all or a portion of itself to the public via an initial public offering.

Explanation:

#Let's Study

#I Hope It's Help

#Keep On Learning

#Carry On Learning

6 0
2 years ago
An individual is now 50 years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retire
Nutka1998 [239]

Answer:

Ans.  He must save during each of the following 10 years, at the end of each year $32,452.

Explanation:

Hi, in order to find the amount of money that he should have in ten years so he can receive an annual payment of $65,156 for 25 more years (24 payments), we need to bring to present value all 24 payments to year 10. Let me show you the formula.

PresentValue_{10} =\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }

Where:

A= $65,156

n= 24

r= 0.08

Therefore the present value in year 10 is:

PresentValue_{10} =\frac{65,156((1+0.08)^{24}-1) }{0.08(1+0.08)^{24} }=686,012

So that is our present value in year 10, or to put it in other words, our future value (if we look at it from year 0). Now we need to find the annuity (amount to save) that with account for $686,012, plus that $100,000 that he already has saved.

Every should look like this.

686,012=100,000*(1+0.08)^{10} +\frac{A((1+0.08)^{10}-1) }{0.08(1+0.08)^{10} }

And we solve this equation for "A".

686,012=A(14.4865625)+215,892

A=\frac{(686,012-215,892)}{14.4865625} =32,452

Best of luck.

5 0
3 years ago
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