Answer:
correct option is B. $4,000
Explanation:
given data
Net credit sales = $100,000
management estimates = 4%
solution
we know here Net credit sales is = 100000
so bad debts expenses will be
debts expenses = 100000 × 4%
debts expenses = $4000
so amount of expense to report on the income statement will be $4000
and after adjustments = will be $4000 + $3000 = $7,000
so correct option is B. $4,000
There are 8 ducks on the grass
Answer:
Part A. $8514
Part B. Purchase Return
Explanation:
Part A. The cash required to payment is the inventory purchases after the sales return. And here the inventory purchases after purchase return are:
Purchases after purchase return = $9,900 - $1,300 = $8600
Now the discount available is 1%
So this implies:
Cash required = $8600 * (100-1)% = $8,514
Part B. Now the double entry under perpetual inventory system would be:
Dr Accounts Payables $86
Cr Purchase Return $86
Taxes are automatically withdrawn from paychecks.
Answer:
47,000
Explanation:
Impairment Loss = Book Value − Fair Value
$180,500 − $133,500 = $47,000