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Montano1993 [528]
3 years ago
9

Journal Entry

Business
1 answer:
Contact [7]3 years ago
4 0

Answer:

Explanation:

unearned rent         6000 (debit)

    Rent revenue.                       6000 (credit)

to record 2 months of realized rent revenue

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Suzuki Supply reports the following amounts at the end of 2021 (before adjustment). Credit Sales for 2021 $ 260,000 Accounts Rec
Amiraneli [1.4K]

Answer:

1. Suzuki estimates 12% of receivables: Net income (before taxes) in 2021 decreases by $5,500  and total assets in 2021 decreases by $5,500

2. Suzuki estimates 3% of credit sales: Net income (before taxes) in 2021 decreases by $7,800 and total assets in 2021 decreases by $7,800

Explanation:

1. Suzuki estimates 12% of receivables

Bad debts are estimated: 12% x $55,000 = $6,600

Before adjusting, Allowance for Uncollectible Accounts balance of $1,100 (credit).

Bad debts expense = $6,600  - $1,100 = $5,500

The entry will be made:

Debit Bad debts expense $5,500

Credit Allowance for Uncollectible Accounts $5,500

Net income (before taxes) in 2021 decreases by $5,500  and total assets in 2021 decreases by $5,500

2. Suzuki estimates 3% of credit sales

Bad debts are estimated: 3% x $260,000 = $7,800

The company uses the percentage of sales method.

Bad debts expense = $7,800

The entry will be made:

Debit Bad debts expense $7,800

Credit Allowance for Uncollectible Accounts $7,800

Net income (before taxes) in 2021 decreases by $7,800 and total assets in 2021 decreases by $7,800

7 0
3 years ago
What are the advantages and disadvantages of common stocks​
andrey2020 [161]

Advantages:

  • You can invest in companies with limited liability.
  • Common stocks offer a higher earning potential.
  • You can easily purchase common stock on virtually any trading platform.
  • Common stocks can provide dividends.
  • You’ll get to take advantage of a growing economy.

Disadvantages:

  • You are the last person to get paid during a company liquidation.
  • You don’t have much control over your investment.
  • Companies are not required to pay dividends on common stocks.
  • It can take time to generate significant gains.
  • You will face high levels of professional competition when investing in common stocks.

Hopes this helps :)

5 0
3 years ago
Each of the following is an advantage of using cash EXCEPT:
Tcecarenko [31]
C. less painful parting with cash
8 0
3 years ago
Read 2 more answers
Haberdash inc. last year reported sales of $12 million and an inventory turnover ratio of 3. the company is now adopting a just-
Sindrei [870]

<span>Sales = $12,000,000</span>

<span> <span>Inventory Turnover ratio (old) = 3
</span><span>Inventory Turnover ratio (new) = 7.5
</span><span>Freed up Cash = ?
</span><span>So, let’s find out the freed up cash
<span> <span>We know level of inventory are calculated as follows;</span>
<span>Inventory = Sales Inventory turnover ratio</span>
<span>Calculating $ value of old inventory
<span> <span>Inventory Old=$12,000.0003
</span> <span><span>                         =</span>$7.5,000,000</span>
<span>  Calculating $ value of New inventory
<span> <span>Inventory New=$12,000,0075
</span> <span><span>                        =</span>$3,000,000</span>
<span> <span>The freed up cash would be=Old Inventory – New Inventory</span>
<span> <span>=$7.5,000,000 - $3,000,000
</span><span>=<span>$4.5,000,000</span></span></span></span></span></span></span></span></span></span></span>
6 0
3 years ago
Read 2 more answers
. There is an 80% probability that Tom will be in good health during the year and incur only $200 in medical expenses, but there
zaharov [31]

Answer:

The  Actuarially Fair Premium that Tom have to pay for hid Health Insurance is $4,160

Explanation:

To compute the amount that Tom have to pay for Health Insurance is;

Actuarially Fair Premium = (Probability of actuality ill × Payments incurred) + (Probability of not actuality ill × Payments incurred)

Actuarially Fair Premium = (20% x $20,000) + (80% x $200)

Actuarially Fair Premium = $4,000 + $160

Actuarially Fair Premium  = $4,160

5 0
3 years ago
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