1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
uranmaximum [27]
3 years ago
13

ABC provides music for special occasions. On January 14, the Smith family hired ABC for an upcoming family wedding for an agreed

upon fee of $10,000. The wedding was scheduled for May As part of the agreement, the Smiths paid ABC half of the fee at the end of April with the remaining amount due by the end of June.
Required:
1. How would ABC record the receipt of the final payment in June?
Business
1 answer:
OLga [1]3 years ago
3 0

Answer:

Debit Cash account (with the amount received)

Credit Accounts receivables (with the amount received)

Explanation:

Revenue is not recorded until the recognition criteria for the recognition of  revenue has been met and this includes;

  • the corresponding cost incurred in generating revenue can be reliably measured
  • the goods or service has been delivered

Given that the service was performed in May, when half of the fee was received in April, the required entries then was

Debit Cash account

Credit Unearned revenue (with the amount received being half payment)

when the service was performed in May,revenue was earned

Debit Unearned revenue (with the amount received being half payment)

Debit Accounts receivable  (with the amount yet to be received being half payment)

Credit Revenue (with the amount agreed for the service)

In June when the final payment is received,

Debit Cash account (with the amount received)

Credit Accounts receivables (with the amount received)

You might be interested in
Laura works for a company that sells luxury cars. Laura approaches a customer by offering the keys to a customer and encouraging
telo118 [61]

Answer:

I think it is the buddy approach method.

Explanation:

5 0
3 years ago
When an accelerated depreciation method is used to calculate depreciation expense: Multiple Choice the accumulated depreciation
erastovalidia [21]

Answer:

the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.

Explanation:

Let me use an example to illustrate this.

An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0

If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250

The net book value halfway through its useful life = $1000 - ($250 x 2) = $500

If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500

The net book value at the beginning of year 2 = $1000 - $500 = $500

Depreciation expense in year 2 = 2/4 x $500 = $250

The net book value at the beginning of year 3 = $500 - $250 = $250

We can see that the net book value halfway through the useful is lower when double declining depreciation method is used

4 0
3 years ago
When John first starts his job, he rides the bus wherever he goes. However, after one year, John receives a promotion and a pay
vekshin1

Answer:

c. Inferior

Explanation:

Based on the information provided it can be said that this behavior would indicate that to John, a bus ride is an inferior good. This term by definition is a good whose demand decreases when consumer's income rises. Since John received an increased salary with his promotion, he is now able to afford to be able to drive instead of taking the bus. Therefore his demand for taking the bus has drastically decreased.

4 0
3 years ago
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020
ivann1987 [24]

Answer:

a. Current ratio = Total current assets/Total current liabilities

Current ratio = $6,840/$3,420

Current ratio = 2 : 1

b. Accounts receivable turnover = Net credit sales / [Net beginning accounts receivables + Net ending accounts receivables / 2]

Accounts receivable turnover = $13,940 / [$3,300+$3,500/2]

Accounts receivable turnover = $13,940 / $3,400

Accounts receivable turnover = 4.1 times

c. Average collection period = 365 / Accounts receivables turnover

Average collection period = 365 / 4.1

Average collection period = 89.0244

Average collection period = 89 days

d. Inventory turnover = Cost of goods sold / [Beginning inventory+Ending inventory/2]

Inventory turnover = $9,000 / [$1,500+$1,500/2]

Inventory turnover = $9,000 / $1,500

Inventory turnover = 6 times

e. Days in inventory at the end of the current year = 365 / Inventory turnover

Days in inventory at the end of the current year = 365 / 6

Days in inventory at the end of the current year = 60.8333

Days in inventory at the end of the current year = 61 days

3 0
2 years ago
A service provided by e-government that requires access to the Internet is _____.
Elan Coil [88]
RFID tags in my idea...
7 0
2 years ago
Read 2 more answers
Other questions:
  • Whom does inflation hurt the most?
    7·1 answer
  • The decision making process followed by consumers to maximize utility assumes that
    12·1 answer
  • Need Help ASAP!!!
    15·1 answer
  • Which of the following strategies makes a profit when the stock price declines and loses money when the stock price increases? (
    13·1 answer
  • A firm has an outstanding issue of 1,000 shares of preferred stock with a $100 par value and an 8 percent annual dividend. The f
    12·1 answer
  • Consumers sell goods or services for a profit.<br> O True<br> o flase
    13·2 answers
  • Erin Brushwood sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $
    12·1 answer
  • Catherine and Jacob have a written contract to buy and sell "100 cases of widgets." The 100 cases is a typo, so after signing th
    12·2 answers
  • You have just been hired as a business consultant to determine what pricing policy would be appropriate to increase the total re
    6·1 answer
  • The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!