Answer:
December 31, 2020
- Dr Bad Debt expense 18,690
- Cr Allowance For Doubtful Accounts account 18,690
Explanation:
First we need to determine the total amount of uncollectible accounts receivable = $385,600 x 6% = $23,100
Then we must subtract the amount already recorded in allowance for doubtful accounts from our total uncollectible accounts = $23,100 - $4,410 = $18,690
We have to debit the difference and credit the contra asset account:
Dr Bad Debt expense 18,690
Cr Allowance For Doubtful Accounts account 18,690
Answer:
Total Cash and Cash Equivalents = $14,100
Explanation:
Particulars Amount Reason
Checking Account $6,000 Readily realizable
Bond Investment Nil The bond is due in 20 yrs, hence not readily realizable
U.S. Treasury Bill $6,500 Due in 1 month
Loan to an Employee Nil The loan is for a period of more than 3 months
Currency and Coins $1,600 They are cash itself
Accounts Receivable Nil Accounts receivable is not considered as readily realizable
Total Cash and Cash Equivalents = $14,100
Answer:
The correct answer is "True"
Explanation:
In marketing, A target audience is a group of customers classified as the targets or for a particular advertisement or message.
Answer:
On the balance sheet, the inventory would appear as:
Inventory $248,000
Explanation:
In the notes to the accounts, the method of determining the cost and the method of valuing the inventory would be disclosed. It is not disclosed on the balance sheet, but on the notes to the accounts.
It would make the balance sheet appear unorganized to include details that should have been included in the notes. The presentation of information is very important in order to ensure that those reading the information understand it. Understanding is not aided by including information that could be displayed elsewhere.
Answer: 17 months
Explanation:
Lease amount = $1000 per month
Purchase amount = $15000
Interest rate = 0.5% per month
Let the number of months that us required for the system to breakeven be m. Therefore,
m × 1000 = 15000 + ( m × 80) + (m × 15000 × 0.5)/100
1000m = 15000 + 155m
1000m - 155m = 15000
845m = 15000
m = 15000 / 845
m = 17 months
