Answer:
$154,000
Explanation:
The computation of the net amount receivable is shown below:
Beginning balance of Accounts Receivable = $150,000
Add: Credit sales made = $600,000
Less: amount collected = $590,000
Less: accounts written off = $4,000
Gross balance in Accounts Receivable =$156,000
Now
Beginning balance in the Allowance for Doubtful Accounts= $6,000
Less: Accounts written off adjusted $4,000
Ending balance = $2,000
So,
Net Accounts Receivable is
= $156,000 - $2,000
= $154,000
Answer:
C) debit Cash $540 and Service Revenue, $280, credit Accounts Receivable, $820
Explanation:
The correct journal entry should have been:
Dr Cash 820
Cr Accounts receivable 820
But since the transaction was erroneously recorded as:
Dr Cash 280
Cr Sales revenue 280
an adjusting entry is necessary for the difference:
Dr Cash 540
Dr Sales revenue 280
Cr Accounts receivable 820
This way cash account will have increased by $280 + $540 = $820, sales revenue will remain unchanged $280 - $280 = $0, and accounts receivable will decrease by $820.
Answer: Company's net capital spending for 2016 = $702,000
Explanation:
Given that,
On December 31, 2015:
Net fixed assets = $1,780,000
On December 31, 2016:
Net fixed assets = $2,150,000
Depreciation expense = $332,000
Therefore,
Company's net capital spending for 2016:
= Ending net assets + Depreciation expense - Beginning net assets
= $2,150,000 + $332,000 - $1,780,000
= $702,000
Answer:
Liabilities
Explanation:
Liabilities are the debts and obligations that a business owes.
Answer:
B. The difference between sales revenues and the costs associated with those sales
Explanation:
The amount of profit made by the company after deducting the total costs which have been incurred in the making and the selling of the product is said to be gross profit. The gross profit is calculated by subtracting the amount of revenue and the cost of the goods sold. Fixed cost is not included in the gross profit. It includes only variable costs.
