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frosja888 [35]
3 years ago
7

On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,534, Indigo Corporation estimates that

8% of its accounts receivable balance of $74,100 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Indigo Corporation determined that B. Jared’s account was uncollectible and wrote off $1,171. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022.
Business
1 answer:
White raven [17]3 years ago
3 0

Answer and Explanation:

The Journal Entry is shown below:-

1. Bad debts expense Dr, $7,462

       To Allowance for doubtful accounts $7,462

($74,100 × 8%) + $1,534

(Being bad debts expense is recorded)

2. Allowance for doubtful account Dr, $1,171

        To Accounts receivable $1,171

(Being allowance for doubtful account is recorded)

3. Accounts receivable Dr, $1,171

        To Allowance for doubtful accounts $1,171

(Being accounts receivable is recorded)

Cash account Dr, $1,171

   To Accounts receivable $1,171

(Being cash is recorded)

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svetoff [14.1K]
The answer is d: to protect against high prices
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3 years ago
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Neuman Corporation Convertible Bonds The following data apply to Neuman Corporation's convertible bonds: Maturity: 10 Stock pric
Natalija [7]

Answer:

A. The bond’s conversion ratio is 28.57

B. The bond’s conversion value is $857.14

C. The bond’s straight debt value is $798.70

D. The minimum price at which Neuman’s bonds should sell is $857.14

Explanation:

A. In order to calculate the bond’s conversion ratio we would have to calculate the following formula:

bond’s conversion ratio=par value/conversion price

According to the given data:

par value=$1,000

Conversion price=$35

Therefore, bond’s conversion ratio=$1,000/$35

bond’s conversion ratio=28.57

B. To calculate the bond’s conversion value we would have to make the following calculation:

bond’s conversion value=bond’s conversion ratio*Stock price

bond’s conversion value=28.57*$30.00

bond’s conversion value=$857.14

C. To calculate the bond’s straight debt value we would have to calculate the following formula:

bond’s straight debt value=PV(0.08,10,50,1,000)

bond’s straight debt value=$798.70

D. The minimum price at which Neuman’s bonds should sell is $857.14

7 0
3 years ago
Sean is a monopolist who operates a business rigging tablets to run twice as fast as the original specifications. If sean charge
pochemuha

The answer is $7 because Marginal revenue is the change in total revenue from 10 customers ($400) to 11 customers ($407)  How a monopolist maximizes profits

How does a monopolist determine its profit-maximizing level of output How does it determine the price that it charges?

The monopolist will select the profit-maximizing level of output where

                                      MR = MC

and then charge the price for that quantity of output as determined by the market demand curve. If that price is above average cost, the monopolist earns positive profits.

How a monopolist maximizes profits

 Because Chuck, a sole commercial airplane operator in small isolated town, has no  competition, he has complete control of market price of air travel in his small tone

 Reduced price → increase in ticket sales

 Monopoly maximizes profit by choosing an amount of profit in which marginal revenue  equals marginal cost (MR= MC)  Since Chuck must reduce his price to sell more units, he has an incentive to sell a  smaller quantity than a perfective competitive company

Learn more about Marginal revenue :

brainly.com/question/10822075

#SPJ4

3 0
1 year ago
Interest rates are expressed as a percentage of ?
Mashcka [7]

Answer:

The interest rate is the amount a lender charges a borrower and is a percentage of the principal—the amount loaned. The interest rate on a loan is typically noted on an annual basis known as the annual percentage rate (APR).

Explanation:

<em>hope this helps</em>

8 0
2 years ago
Sheffield Company purchases $50,300 of raw materials on account, and it incurs $63,900 of factory labor costs. Supporting record
Yakvenalex [24]

Answer:

Work-in-process - Assembly Department  $64,160 (debit)

Work-in-process - Finishing Department  $38,080 (debit)

Overhead $102,240  (credit)

Explanation:

Assembly Department Costs Assignments

J1 : Raw Materials

Work -in-process $27,100 (debit)

Raw Materials (credit)

J2 : Labor

Work -in-process $40,100 (debit)

Salaries and Wages Payable $40,100 (credit)

J3 : Overheads

Work-in-process  $64,160 (debit)

Overhead $64,160 (credit)

Finishing Department Costs Assignments

J1 : Raw Materials

Work -in-process $23,200 (debit)

Raw Materials $23,200 (credit)

J2 : Labor

Work -in-process $23,800 (debit)

Salaries and Wages Payable $23,800 (credit)

J3 : Overheads

Work-in-process  $38,080 (debit)

Overhead $38,080  (credit)

Summary of assignment of overhead

Work-in-process - Assembly Department  $64,160 (debit)

Work-in-process - Finishing Department  $38,080 (debit)

Overhead $102,240  (credit)

3 0
3 years ago
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