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Drupady [299]
3 years ago
13

Arundel Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has

a balance that consists of: Dollar Value Age of Account Estimated Collectible $250,000 < 30 days old 99.5% 70,000 30 to 60 days old 91.0% 30,000 61 to 120 days old 73.0% 8,000 > 120 days old 17.0% The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar.
Business
1 answer:
Ipatiy [6.2K]3 years ago
4 0

Answer:

After the adjusting entry is made, Allowance for Doubtful Accounts balance is a credit balance of $22,290

Explanation:

Arundel Company uses aging to estimate uncollectibles.

Estimated uncollectibles = $250,000 x ( 1 - 99.5%) + $70,000 x (1 - 91%) + $30,000 x (1 - 73%) + $8,000 x (1 - 17%) = $1250 + $6,300 + $8,100 + $6,640 = $22,290

The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000.

Bad debt Expense = $22,290 + $2,000 = $24,290

The adjusting entry:

Debit Bad debt Expense $24,290

Credit Allowance for Doubtful Accounts $24,290

After the adjusting entry is made, Allowance for Doubtful Accounts balance is a credit balance of $22,290

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Solution:

Dec 31 2013

Compensation Expenses                                    $200,000

Paid in Capital- Stock Options                            $200,000

*To record compensation expense for 2013

Computation-Compensation Expense= 400,000/2= $200,000

Dec 31 2014

Compensation Expenses                                       $200,000

Paid in Capital- Stock Options                               $200,000

*To record compensation expense for 2013

Computation- Compensation Expense= 400,000/2= $200,000

Dec 31 2015

Cash                                                       $240,000

Paid in Capital- Stock Options              $320,000

Common Stock                                        $40,000

Paid in capital – in excess of par common stocks        $520,000

*To record stock option for 5 years and market price $30 with a balance record in the PIC in excess of common stock, 8,000 option exercised out of 10,000

Computation-

PIC- stock options- 400,000 X 80%= $320,000

      Common stock = 8,000 X 5 per share= $40,000

       80%= amount of stock options redeemed.

       8,000/10,000= 80%

Dec 31, 2017

PIC- stock options                                            $80,000

PIC- Expired Stock Options                             $80,000

*To record paid in capital- stock option for 2017 which is $80,000

Computation= 400,000 X 20%= $80,000

20% = amount of stocks that were not redeemed.

4 0
3 years ago
the present value of a future sum decreases as either the discount rate or the number of periods per year increases, other thing
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The statement is true. The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant.

Future cash flows are reduced by the discount rate, so the higher the cut price fee the lower the existing fee of the destiny coins flows. A lower discount rate leads to a higher present value. As this implies, whilst the discount price is better, cash in the future will be worth less than it's far nowadays.

Preserving other factors steady, as the interest price will increase, the present cost of an quantity to be received at the end of a fixed duration decreases. This means at a higher hobby price the present value of a future cash float falls. Decrease the prevailing price is. inversely related. growing the discount price decreases the present price and vise versa. Future value of that investment.

The prevailing value of a destiny lump sum decreases as the discount fee used decreases, All else held constant. the present cost and discount rate are inversely associated. If the destiny cost and the range of periods are held steady the prevailing price will lower as the cut price rate increases.

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4 0
1 year ago
Marvin Corporation has the following information reported on the balance sheet as of December 31, 2017 Common Stock, $10 par val
SCORPION-xisa [38]

Answer:

  • How many shares of common stock are outstanding?

C. 3,000

Explanation:

Treasury stock, are those that the company repurchase from the market and keep it in the company, in this case the company keep the shares in the accounting and the shares could be reissued in the future.

The company issued 9,000 shares, it is reflected in the Common Stock account,  $90.000 / $10 = 9,000.

Then in the Treasury Stock account are registered the shares that the company repurchases from the market, these are, 6,000 shares.

Finally the total Common Shares outstanding are 3,000.

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3 years ago
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sleet_krkn [62]

Assuming Reggie who is 55, had an adjusted gross income of $32,000 in 2020, Reggies medical expense deduction will be $75

Calculation to determine Reggie medical expense deduction

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Add Health insurance premium-after tax $850

Add Doctors fees $1,250

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Total expenses  $2,975

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Less Insurance reimbursement  ($500)

Less 7.5% of Adjusted gross income ($2,400)  

($32,000×7.5%)

Medical Expense Deduction  $75

($2,975 - $500 - $2,400)

Inconclusion assuming Reggie who is 55, had an adjusted gross income of $32,000 in 2020, Reggies medical expense deduction will be $75

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