Answer:
A. The company would debit the Allowance account instead of Purchase Returns.
Explanation:
In the management of purchases transactions, a company will maintain several other accounts such as purchase returns and purchases allowance.
Purchases allowance will include allowances such as discount received and other compensations from suppliers. The allowances reduce the net value of the purchases. i.e., when calculating the net purchases, one has to deduct the purchases allowed amount. When the business receives a purchase allowance, the amount will increase the purchases allowance account. The accountant will, therefore, debit that account.
Purchases returns are goods that the company had purchased from suppliers but have returned them for some reason. They could be defective or inappropriate.
Answer:
(A) 18,400 units
(B) 12,940 units
Explanation:
The computation of the equivalent units of production for
(A) Material = Units transferred out + Ending work in process
= 9,300 units + 9,100 units
= 18,400 units
(B) Conversion = Units transferred out + (Ending work in process × conversion percentage)
= 9,300 units + 9,100 units × 40%
= 9,300 units + 3,640 units
= 12,940 units
Answer:Flint corporation journal $
Date
1. Bank account Dr 7800
Common stock Or. 7800
Narration. Issuance of 700 ordinary stock for $7800 .
2. Bank account Dr 7800
Common stock Cr. 1400
Share premium. 6400
Narration. Issuance of 700 ordinary at $7800 at a premium.
Explanation:
Shares can be issued at par, premium or discount. When it's issued at it's nominal value it's said to be issued at par, when it's issued above it's nominal value it's said to be issued at a premium and when it's issued below par it's said to issued at a discount.
Answer:
A: a longer period in debt
Explanation:
Minimum payments are generally associated with credit card debts. A credit card allows the user to spend on credit. At the end of every month, the credit card company sends the customer a statement detailing the amount they owe. The statement shows the total outstanding amount and the minimum amount payable.
Paying the total outstanding amount clears the total credit card debt helping the customer avoid interest charges. Paying the minimum amount means the customer will have a balance carried forward to the following month, attracting interest charges.
Paying the minimum amount allows the user to continue using the credit card. There will be a balance carried forward and interest charges if only the minimum amount is paid. Due to the high-interest rates that credit cards charge, the debts increase exponentially. The cardholder will require a long time to clear the debts, which means that the interest charges and penalty amounts will be high.
Answer:
$6,540
Explanation:
Given:
accounts receivable of $238,000
allowance for uncollectable accounts of $600 (credit)
Also, the allowance for uncollectible accounts should be 3% of accounts receivable.
Therefore the amount of the adjustment for uncollectible accounts would be
= 3% of $238,000 - $600= $(7140-600)= $6,540
