Tayahin

At the end of the current year, Accounts Receivable has a balance of $430,000; Allowance for Doubtful Accounts has a credit bala

Rudiy27

Answer:

1. Amount of the adjusting entry for uncollectible accounts:

$4,850

Debit Bad Debts Expense $4,850

Credit Allowance for Doubtful Accounts $4,850

To record bad debts expense for the year.

2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense:

Accounts Receivable:

Balance as per question = $430,000

Allowance for Doubtful Accounts:

Balance as per question = $4,000

Bad Debt Expense - $4,850

Adjusted balance $8,850

Bad Debt Expense:

Adjustment $4,850

3. The net realizable value of Accounts Receivable:

Accounts Receivable balance $430,000

less Allowance for Doubtful $8,850

Net Realizable Value $421,150

Explanation:

a) Bad Debt Expense = ($1,940,000 x 1%)/4 = $4,850

b) The amount of the adjusting entry for uncollectibles is the bad debt expense of $4,850.

c) The Allowance for doubtful accounts will increase by $4,850 to $8,850.

d) The net realizable value of the accounts receivable is the difference between the accounts receivable balance and the allowance for doubtful accounts. This is the estimated value that the company expects to realize after considering the probability of uncollectibles.

8 0

3 years ago

Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a proc

aksik [14]

Answer:

Beginning 22,000

Started 60,000

Total units accounted for by the Department 82000

Units to be assigned costs:

Physical Units Materials Conversion

Beginning 22,000 17,600(80%) 6,600(30%)

Started and completed 36,000 36,000 36,000

transferred 58,000 58,000 58,000

ending 24,000 12,000(50%) 2,400(10%)

Total units 82,000 70,000 60,400

(weigthed average)

Equivalent Cost:

Direct Materials Conversion

Total cost $433,300.00 $434,880.00

Total equivalent units 70000 60,400

Cost per equivalent unit $6.19 $7.2

Costs charged to production: $\left[\begin{array}{cccc}&Direct Materials&Conversion&Total\\$Beginning&168360&84834&253194\\$Incurred&264940&350046&614986\\$Total accounted for&&&868180\\\end{array}\right]$

Cost allocated to completed and partially completed units:

$\left[\begin{array}{ccccc}&Direct Materials&Conversion&Total\\$Beginning&136,180&158,400&294,580\\$Started and completed&222,840&259,200&482,040\\$Transferred-out&&&776,620\\$Ending&74,280&17,280&91,560\\$Total costs assigned&&&868,180\\\end{array}\right]$

Explanation:

We add beginning and transferred-in to get total physical units

then, we apply the percentagge of completion and calcualte the equivalent units

which is under weigthed average method:

transferred-out units + percentage of completion in ending WIP

then, we calculate the equivalent cost per unit.

Last, we do the cost reconciliaton.

4 0

3 years ago

Flapjack Corporation had 7,680 actual direct labor hours at an actual rate of $12.45 per hour. Original production had been budg

Mashutka [201]

Answer:

Labour time (efficiency) variance = $9,984 unfavorable

Explanation:

The labour time variance is the dollar value of the difference between the standard time allowed for the actual output produced and the actual time used.

Hours

Standard hours ( 960 units × 7.2 hours ) = 6,912

Actual hours 7,680

Time variance 768 Unfavorable

× standard labour rate × $13

Variance  $9,984 Unfavorable

3 0

3 years ago

Determine which revision of each the following sentences provides the most clarity.

zhenek [66]

Answer:

d

Explanation:

6 0

3 years ago

Failing to respond to the needs of internal customers will diminish the confidence these users have in purchasing, and they may

Solnce55 [7]

Answer:

The correct answer is Maverick buying.

Explanation:

Maverick, is a wayward, a dissident, a rebel, someone who refuses to abide by the rules or resists joining a group. The term originates from Samuel A. Maverick (1803-1870), a Texas rancher, who refused to mark his cattle.

The "maverick buying", refers to purchases out of contract or channels established by an organization. For example, the Corporate Supply department negotiates a competitive price for certain particular models of laptops with a distributor. Days later, someone from the Human Resources department requests the purchase of a much more expensive model, for which a discount has not been negotiated.

Another example: traveling in an airline and staying in a hotel other than those with which the company has signed agreements.

The impact of bypassing the preferred purchasing channels and systems can vary from operational inefficiency, to missing out on the advantages of corporate contract negotiation, large fines and even jail time.

4 0

3 years ago