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Arada [10]
3 years ago
8

During 2018, its first year of operations, Pave Construction provides services on account of $142,000. By the end of 2018, cash

collections on these accounts total $101,000. Pave estimates that 25% of the uncollected accounts will be bad debts.
Required:
1. Record the adjustment for uncollectible accounts on December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet Record the adjustment entry for Uncollectible Accounts Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Bad debt expense 10,250 Allowance for uncollectible accounts 10,250
2. Calculate the net realizable value of accounts receivable.
Business
1 answer:
Dimas [21]3 years ago
5 0

Answer:

1. Record the adjustment for uncollectible accounts on December 31, 2018.

Dr Bad debt expense 10,250

    Cr Allowance for doubtful accounts 10,250

Allowance for doubtful accounts is a contra asset account that reduces the amount of accounts receivable and has a credit balance.

2. Calculate the net realizable value of accounts receivable.

net realizable value of accounts receivable  = total accounts receivable - allowance for doubtful accounts = $41,000 - $10,250 = $30,750

Explanation:

total services on account $142,000

cash collected $101,000, remaining accounts receivable $41,000

25% of remaining accounts receivable will be uncollectible = $41,000 x 25% = $10,250 in bad debts

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Larned Corporation recorded the following transactions for the just completed month.
lara [203]

Answer:

1. Dr Raw materials $80,000

Cr Account payable $80,000

2. Dr Work-in-Process $62,000

Dr Manufacturing overhead $9,000

Cr Raw materials $71,000

3. Dr Work-in-Process $101,000

Dr Manufacturing overhead $11,000

Cr Cash $112,000

4. Dr Manufacturing overhead $175,000

Cr Accumulated depreciation $175,000

Explanation:

Preparation of Journal entries

1. Based on the information given we were told that the amount of$80,000 in raw materials were been purchased on account which means that the Journal entry will be :

Dr Raw materials $80,000

Cr Account payable $80,000

(Raw materials purchased on account)

2. Based on the information given we were told that the amount of $71,000 in raw materials were been used in production in which the amount of $62,000 was for used for direct materials while the remaining was for indirect materials which means that the Journal entry will be:

Dr Work-in-Process $62,000

Dr Manufacturing overhead $9,000

(71,000-62,000)

Cr Raw materials $71,000

(raw material charged to production)

3. Based on the information given we were told that the Total labor wages amount of $112,000 were been paid in cash in which the amount of $101,000 was for direct labor while the remaining was for indirect labor which means that the Journal entry will be :

Dr Work-in-Process $101,000

Dr Manufacturing overhead $11,000

(112,000-101,000)

Cr Cash $112,000

(Wages charged to production)

4. Based on the information given we were told that the Depreciation of the amount of $175,000 was incurred on factory equipment which means that the Journal entry will be :

Dr Manufacturing overhead $175,000

Cr Accumulated depreciation $175,000

(Depreciation charged)

4 0
3 years ago
Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of prod
DedPeter [7]

Answer:

Recher Corporation:

a) Financial impact of buying part Q89:

i) Relevant costs for In-house production of part Q89 are the avoidable costs:

Direct materials - $7.60

Direct labour - $4.20

Variable overhead - $8.30

Supervisor's salary $3.20

Avoidable general overhead - $0.81

Avoidable cost = $24.11 per unit

Total = $24.11 x 6,200 = $149,482

ii) Relevant cost of buying outside equals outside price minus additional segment savings = (6,200 x $27) - $15,600 = $151,800

When i) is compared with ii), it shows that it would cost more to buy outside ($151,800) than to produce the part in-house ($149,482).

b) The alternative the company should choose is to produce in-house.

Explanation:

a) The avoidable general overhead of $0.81 was obtained by dividing $5,000 of general overhead by 6,200 units, i.e. $5,000 / 6,200.

b) The depreciation for the special equipment is not included as it is not relevant.  It must be incurred no matter the option chosen.

c) The relevant cost of buying the part outside was reduced by $15,600 since this amount would be realized as additional margin with the choice.

d) |n making cost decisions, relevant and avoidable costs are considered.  Any cost that will be incurred notwithstanding the choice made is not relevant.  Such costs are unavoidable.  For example, the depreciation on the equipment.

5 0
3 years ago
Ray invested in two different savings bonds. Did he diversify?<br><br> yes<br> no
Artyom0805 [142]
Yes, because Ray investing in two different saving bonds is basically  diversification. 
6 0
4 years ago
It takes 30 minutes of direct labor time to make one unit. Direct labor wages average $17 per hour. Variable overhead is applied
Cerrena [4.2K]

Answer:

$404,000

Explanation:

Overheads includes all indirect cost incurred to product the units to be sold. Indirect costs are those costs which are not directly traceable / attributable to the product. These cost are variable and fixed.

Time for each unit = 30 minutes = 0.5 hours

Budgeted production in November = Closing Inventory + Sales in November - Opening Inventory.

Budgeted production in November = (180,000 x 10% ) + 135,000 - 14,000 = 139,000

Budgeted production overhead Included all the variable and fixed overheads incurred to produce the budgeted production.

Variable overhead = 139,000 x 5 X 0.5 = $347,500

Total budgeted Overhead = $347,500 + $56,500 = $404,000

5 0
3 years ago
Why are business transctions important
Jet001 [13]

Answer:

Good records allow you to identify all of your assets, expenses, income, and liabilities. This lets you see the strengths and weaknesses of your business, which will enable you to make better financial decisions. Accurate accounts give real-time data for better reporting and forecasting.

HOPE THIS HELPED!!!!!!!!!!!!!XDDDDDDDDDDD

6 0
3 years ago
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