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cricket20 [7]
3 years ago
6

On August 5, 2018, Crane Furniture shipped 30 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set w

as $230 each. The cost of shipping the dining sets amounted to $2400 and was paid for by Crane Furniture. On December 30, 2018, the consignee reported the sale of 20 dining sets at $730 each. The consignee remitted payment for the amount due after deducting a 7% commission, advertising expense of $480, and installation and setup costs of $660.
The amount cash received by Crane furniture is:
Business
1 answer:
Lelechka [254]3 years ago
8 0

Answer:

$12,438

Explanation:

The amount cash received by Famous furniture = (20×$730) × (100%-7%) – $480 – $660

=$14,600×(1-0.07)-$1,140

=($14,600×0.93)-$1,140

=$13,578-$1,140

= $12,438

Therefore the amount of cash received by Crane furniture is: $12,438

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The allowance for doubtful accounts for that year is calculated as 5% of the accounts receivable balance. This amounts to $8000 (160000 x 5%) before bad debts have been accounted for. Allowance for doubtful accounts moves in the opposite direction as accounts receivable because it is a contra account to this line item. At the end of the year before year end closing entries are done, and after the bad debts have been accounted for, the balance on the allowance for doubtful accounts is $5000.

This means that bad debts for that year is:

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3 years ago
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worty [1.4K]
The answer you're looking for is "Share." Hope this helps!
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