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horrorfan [7]
3 years ago
15

At the end of the first year of operations, Gaur Manufacturing had gross accounts receivable of $412,000. Gaur's management esti

mates that 8% of the accounts will prove uncollectible. What journal entry should Gaur record to establish an allowance for uncollectible accounts
Business
1 answer:
s344n2d4d5 [400]3 years ago
7 0

Answer:

Dr bad debt 32,960

Cr Allowance for uncollectible account 32,960

Explanation:

Preparation of the journal entry that Gaur should record to establish an allowance for uncollectible accounts

Since we were told that he had gross accounts receivable of the amount of $412,000 in which 8% of the accounts will prove uncollectible this means the transaction will be recorded as:

Dr Bad debt 32,960

Cr Allowance for uncollectible account 32,960

($412,000×8%)

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Brrunno [24]

Answer:

Delgado will classify the stock on his balance sheet as a long term investment.

Explanation:

A long term investment is an asset owned by a company and which it hopes to keep for more then a year.

Long term investments are recorded on the asset side of balance sheets and they can be in form of land, bonds, stocks, machinery, and so on.

The opposite of long term investment is short term investment where an asset is kept for less than a year.

3 0
3 years ago
The Accounts Payable account has a beginning balance of $11,400 and the company purchased $52,000 of supplies on account during
Solnce55 [7]

Answer:

$44,300

Explanation:

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= $6,400-$19,100

= $44,300

6 0
3 years ago
For anything to be considered money it must be Group of answer choices either a commodity or a token, as long as it is generally
Sindrei [870]

Answer:

Either a commodity or a token, as long as it is generally accepted as a means of payment.

4 0
3 years ago
Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and compu
SCORPION-xisa [38]

Answer:

$57,400

Explanation:

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= Total fixed manufacturing overhead cost + Direct labor-hours × Variable manufacturing overhead per direct labor-hour

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All other information that is given in the question is ignored.

7 0
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According to Henry Mintzberg, in the _____, managers receive a great deal of unsolicited information because of their personal c
goldfiish [28.3K]

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6 0
3 years ago
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