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3 years ago

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

Business

1 answer:

Sever21 [200]3 years ago

8 0

Answer:

$202,400

Explanation:

Calculation for what The cost of December merchandise purchases would be:

December merchandise purchases:

November December January

Sales $280,000 $260,000 $250,000

Cost of goods sold (80% of sales)

$224,000 $208,000 $200,000

(80%*$280,000=$224,000)

(80%*$260,000=$208,000)

(80%*$250,000=$200,000)

Add desired ending merchandise inventory(70% of next month's COGS) $145,600 $140,000

(70%*$208,000=$145,600)

(70%*$200,000=$140,000)

Total needs $369,600 $348,000

($224,000+$145,600=$359,600)

($208,000+$140,000=$348,000)

Less beginning merchandise inventory(70% of this month's COGS)

$156,800 $145,600

(70%*$224,000=$156,800)

(70%*$208,000=$145,600)

Required purchases$212,800 $202,400

($369,600-$156,800=$212,800)

($348,000-$145,600=$202,400)

Therefore The cost of December merchandise purchases would be:$202,400

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A product is scarce when what happens?

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D. Demand is greater than supply

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3 years ago

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When examining the Fed's balance sheet, in most periods, the two most important assets are: A. U.S. Treasury securities and

Allushta [10]

Answer: D. U.S. Treasury securities and Discount loans to banks.

Explanation: When examining the Fed's balance sheet, in most periods, the two most important assets are U.S. Treasury securities and Discount loans to banks. The Fed's balance sheet balance sheet includes a large number of distinct assets and liabilities containing a great deal of information about the scale and scope of its operations. Of these assets the U.S. Treasury securities and Discount loans to banks are paramount.

U.S Treasury securities are such as bills, notes and bonds issued by the U.S. government viewed as having virtually no credit risk. As such, they are debt obligations of the U.S. government.

Discount loans to banks are direct short term loans provided to banks by the Fed to meet temporary shortages of liquidity caused by internal or external disruptions.

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3 years ago

Which type of bankruptcy requires the liquidation of most of the debtor's assets?

8_murik_8 [283]

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2 years ago

Logan, a 50 percent shareholder in Military Gear Inc. (MG), is comparing the tax consequences of losses from C corporations with

Musya8 [376]

Answer:

$9,840

Explanation:

In this question, we have to take the difference between the payment for S corporation and the C corporation

If Military Gear Inc is a C corporation, then the payment would be

= Ordinary income × marginal tax rate

= $84,000 × 24%

= $20,160

And, if Military Gear Inc is a S corporation, then the payment would be

= (Ordinary income - net effect) × marginal tax rate

= ($84,000 - $41,000) × 24%

= $43,000 × 24%

= $10,320

The net effect would be

= $159,000 - $118,000

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The net payment would be

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= $9,840

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3 years ago

On January 1, 2011 Grace Company had an $13,000 balance in the Accounts Receivable account and a zero balance in the Allowance f

Lubov Fominskaja [6]

Answer:

The amount of uncollectible accounts expense recognized on the 2011 income statement is:

$6,600.

Explanation:

As the amount of uncollectible accounts are expressed as percentage of the total sales, then the amount is $6,600

Initial Balance

Dr Accounts Receivable $ 13.000

During 2011, Grace provided $55,000 of service on account

Dr Accounts Receivable $ 55.000

Cr SALES $ 55.000

The company collected $48,100 cash from account receivable.

Dr CASH $ 48.100

Cr Accounts Receivable $ 48.100

Uncollectible accounts are estimated to be 12% of sales on account

Dr Bad Debt Expense $ 6.600

Cr Allowance for Uncollectible Accounts $ 6.600

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of accounts receivables as CREDIT.

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

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3 years ago