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Fed [463]
3 years ago
15

M Company has the following information available before recording the adjustment at the end of the year: Accounts Receivable $8

00,000 Allowance for doubtful accounts per books before adjustment $50,000 credit Bad Debt Expense calculated using percentage of receivables method $15,000 The cash (net) realizable value of the accounts receivable at the end of the year after adjustment is Select one: a. None of the above b. $735,000 c. $685,000 d. $750,000 e. $800,000
Business
1 answer:
iren [92.7K]3 years ago
7 0

Answer:

b. $735,000

Explanation:

Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.

Allowance for Doubtful Accounts balance before adjustment = $50,000 Credit

Bad Debt expense based on percentage of receivables = $15,000

This adjustment will added to the balance of $50,000 to make Allowance for Doubtful Accounts ending balance equals to $65,000 ( $50,000 + $15,000 ).

Net realizable value of account receivable is the net value of Allowance for Doubtful Accounts and Account receivable.

Net Realizable value of the accounts receivable = $800,000 - $65,000 = $735,000

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There have been several instances in the last 150 years when valuable materials such as diamonds have been found contained in gl
Lana71 [14]

Answer:

<u>Lateral moraine</u>

Explanation:

It is important to note the duration of years here; 150 years ago. The Lateral moraine is a very familiar image when dealing with glaciers.

Therefore, the Lateral moraine would be most useful for tracing valuable gold deposits back to their bedrock source area since it is also an unconsolidated debris that is found on the side of glaciers.

6 0
3 years ago
Samantha makes $250.00 a week and saves 10% of her paycheck each week. How much will she save in 12 months
lozanna [386]

Answer:

7

Explanation:

9867=7

7 0
2 years ago
purchased goods for Rs 10000 and paid Rs 4000 in cash. The balance amount is paid through cheque after receiving discount Rs 500
Vsevolod [243]

purchased goods for Rs 10000 and paid Rs 4000 in cash. The balance amount is paid through cheque after receiving discount Rs 500.​

Total balance is 500

In economics, a good is anything that satisfies a person's needs and provides utility, such to a customer buying a satisfying product. Services that cannot be transferred and transferable products are two categories that are frequently distinguished. When a good is helpful to people but is in short supply compared to demand, it is said to be a "economic good" and requires human effort to attain.  Free things, on the other hand, like air, are always available and don't require any deliberate effort to obtain. Private goods include anything a person owns or uses on a regular basis that is unrelated to food, such as televisions, living room furnishings, wallets, cell phones, etc.

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8 0
2 years ago
The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear be
Makovka662 [10]

Answer:

$191,500

Explanation:

If the item is not dropped:

Loss = Sales - Variable expenses - Fixed manufacturing expenses - Fixed selling and administrative expenses

       = $923,000 - $405,500 - $337,000 - $244,000

       = (63,500) loss

Fixed mfg. expenses remaining:

= Fixed manufacturing expenses - Avoidable Fixed manufacturing expenses

= $337,000 - $207,500

= $129,500

Fixed selling and administrative expenses remaining:

= Fixed selling and administrative expenses - Avoidable Fixed selling and administrative expenses

= $244,000 - $118,500

= $125,500

Loss in expenses remaining if item is dropped :

= Fixed mfg. expenses remaining + Fixed selling and administrative expenses remaining

= $129,500 + $125,500

= ($255,000)

Overall net operating income would decrease by:

= Loss in expenses remaining if item is dropped - Loss in expenses if item is not dropped

= $255,000 - $63,500

= $191,500

5 0
3 years ago
Kelchner Corporation has provided the following contribution format income statement. Assume that the following information is w
Juliette [100K]

Answer:

The contribution margin ratio is closest to 40%

Explanation:

The contribution margin ratio calculates the percentage of sales that will contribute to cover fixed costs and earn a profit. The contribution margin is the difference between the selling price per unit and the variable cost per unit of a product. The contribution margin ratio is the contribution margin per unit represented as a percentage of selling price per unit or total contribution margin represented as a percentage of total sales revenue.

CM Ratio = Total contribution margin / Total Sales revenue

CM ratio = 72000 / 180000  =  0.4 or 40%

7 0
3 years ago
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