1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
11Alexandr11 [23.1K]
3 years ago
5

Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis.

Business
1 answer:
kkurt [141]3 years ago
3 0

Answer:

Net Zero Products

a) The balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method is $4,300.

b) Adjusting Entry to record bad debt expense:

Debit Bad Debt Expense $1,700

Credit Allowance for Doubtful Accounts $1,700

To record the bad debt expense for the period and bring the allowance to $4,300 credit balance.

Explanation:

a) Data and Calculations:

Aging of receivables analysis:

Total (days)                          0        1 to 30     31 to 60     61 to 90     above 90

Accounts receivable $171,000   $96,000   $34,000     $15,000     $12,000

Percent uncollectible                      1%            4%                 6%            9%

Allowance for doubtful     0          $960        $1,360         $900        $1,080

Total allowance for doubtful = $4,300 (960 + 1,360 + 900 + 1,080)

b) The adjustment in the Allowance for Doubtful Accounts needed for the current period is $1,700 ($4,300 - $2,600).  This amount will be debited to the Bad Debts Expense account and credited to the Allowance for Doubtful Accounts.  It will bring the total for the Allowance for Doubtful Accounts to $4,300 from $2,600.

You might be interested in
UPS, a delivery services company, has a beta of 1.1, and Wal-Mart has a beta of 0.7. The risk-free rate of interest is 4% and th
Brrunno [24]

Answer:

7.78%

Explanation:

Calculation for the expected return on a portfolio

First step is to calculate the portfolio beta

Portfolio beta=30%*1.1+30%*0.7=1.15

Portfolio beta=0.33+0.21

Portfolio beta=0.54

Now let calculate the expected return using this formula

Expected return=rf+(Portfolio beta*mrp)

Let plug in the formula

Expected return=4%+(0.54*7%)

Expected return=7.78%

Therefore the expected return on a portfolio is 7.78%

7 0
2 years ago
Choose the correct way to complete the sentences to explain how to draw concentric circles when doing a freehand sketch.
taurus [48]

1st one is "extended tripod grip" and second one is "rotating the paper with your free hand and pulling it towards your body".

4 0
2 years ago
PRODUCT MIX DECISION, SINGLE CONSTRAINT
Helga [31]

Answer:

1.. Unit produce 20,000 ​deluxe units per year

Units sold $33.33

Total contribution margin $500,000

2. Basic 50,000 units

Standard 2,000 units

Deluxe 12,000 units

$470,000

Explanation:

1. Calculation to determine How many of each type of unit should be produced and sold to maximize the company's contribution margin? What is the total contribution margin for your selection?

BASIC STANDARD DELUXE

Price $9 $30 $35

Less Variable cost 6 20 10

=Contribution margin (A) 3 10 25

Machine hours (B) 0.1 0.5 0.75

Contribution margin per

machine hours (A/B) $30 $20 $33.33

Unit produce=(15,000/0.75)

Unit produce=20,000 deluxe units per year.

In order to maximize the company's contribution margin the company should sell deluxe unit with contribution margin of the amount of $ 33.33 per machine hour

Total contribution margin= 20,000 units,*$25

Total contribution margin= $500,000.

Therefore The amount of unit that should be produced is 20,000 units and $33.33 will be sold to maximize the company's contribution margin while the the total contribution margin for your selection is $500,000

2. Calculation to determine product mix would you recommend, and what would be the total contribution margin

The product mix to recommend will be:

Basic 50,000 units

Standard 2,000 units

Deluxe 12,000 units

Calculation to determine Total contribution margin

Total contribution margin= ($3 × 50,000) + ($25 × 12,000) + ($10 × 2,000)

Total contribution margin=$150,000+$300,000+$20,000

Total contribution margin = $470,000

Therefore Total contribution margin is$470,000

4 0
2 years ago
Ed runs an auto repair business out of the garage attached to his personal residence. How should he account for each of the foll
soldi70 [24.7K]

Answer:

a. Cash received from repair services, $28,000. Repair business

b. Interest paid on his home mortgage, $7,300.Personal expenses

c. Power jack hoist purchased at a cost of $12,000. Repair business

d. Electricity bills, $3,600. (Ed does not have separate electricity service to the garage.)Personal expenses

e. Checks received from customers that were returned by his bank, $1,600. Repair business

The bank charged Ed’s account $35 for processing the bad checks.Repair business

f. Telephone bill for phone in the garage, $420. (Ed has a separately listed phone in his house.)Repair business

g. Advertising in the local newspaper, $800.Repair business

h.Interest paid on home furniture loan, $600.Personal expenses

Explanation:

Under the entity concept, Ed must segregate the income and expenses associated with his auto repair business from those that are personal.  The importance of this segregation is that all trade or business expenses are deductible for adjusted gross income, while most personal expenditures are not deductible.  

c

7 0
3 years ago
What amount is a reasonable tip for an airport skycap?
Nikitich [7]
At least $2 per bag as most airlines don't pay.
3 0
3 years ago
Read 2 more answers
Other questions:
  • On January 15, 2016, Bravo Company purchased $4,000 of construction supplies, on account, from the Zulu Company. Prepare Bravo C
    10·1 answer
  • A 2000 11% ten-year bond has semiannual coupons and is sold to yield 5.2% covertible semiannually. the discount on the bond is $
    5·1 answer
  • In most of the 1970s, the fed's policy created expectations of high inflation. true false
    6·1 answer
  • You recently invested $18,000 of your savings in a security issued by a large company. The security agreement pays you 6 percent
    8·1 answer
  • A food service operation that is concerned with sourcing asks suppliers detailed questions about _____ the food is produced. A.
    7·2 answers
  • Closet Links Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost $ 132 comma 00
    8·1 answer
  • Corporate social responsibility (CSR) is the obligation Multiple Choice
    11·1 answer
  • Explain three types of production technology defined by James D. Thomson and discuss what kind of structure (Mechanic Vs. Organi
    15·1 answer
  • On June 1, 2018, Crane Company and Cheyenne Company merged to form Ayayai Inc. A total of 876,000 shares were issued to complete
    11·1 answer
  • in following the best practices for capital budgeting analysis we always try to evaluate incremental:
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!