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horsena [70]
3 years ago
7

Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a

percentage of credit sales. During the year, net credit sales totaled $600,000, and the estimated bad debt percentage is 2%. The allowance for uncollectible accounts had a credit balance of $5,600 at the beginning of the year and $4,700, after adjusting entries, at the end of the year. What is the amount of accounts receivable written off during the year
Business
1 answer:
Nikitich [7]3 years ago
8 0

Answer:

$12,900

Explanation:

Calculation for the amount of accounts receivable written off during the year

Beginning Balance $5,600

Add Bad debt expense $12,000

(2% x $600,000)

Less End-of-year balance ($4,700)

Accounts receivable written off $12,900

($5,600+$12,000+$4,700)

Therefore the amount of accounts receivable written off during the year will be $12,900

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4 0
3 years ago
Mini, Inc., earns pretax book net income of $1,900,000 in 2019. Mini deducted $196,400 in bad debt expense for book purposes. Th
Xelga [282]

Answer:

a. $10,311

b. $0

c. $9,546.95

Explanation:

a. Deferred tax asset account:

= Deferred tax asset 2019 + Deferred tax asset 2020

Deferred tax asset 2019 = Bad debt for book purposes * tax rate

= 196,400 * 21%

= $41,244

Deferred tax asset 2020 = Bad debt for tax purposes * tax rate

= 147,300 * 21%

= -$30,933

Deferred tax account balance = 41,244 + (- 30,933)

= $10,311

b. Deferred tax liability account = $0

From the given details there are no tax liabilities.

c. Cost to Mini;

= Deferred tax asset * Present value factor

= 10,311 * 0.9259

= $9,546.95

4 0
3 years ago
County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In per
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Answer:

A) if the mistake involves a material fact

Explanation:

Any party involved in the transaction, either Dale and Ezra, has the right to rescind the contract if the other party provided false information about a material fact that was relevant to the other party's intention of signing the contract. In contract law, a material fact is any fact that is important, significant or essential to any of the parties involved in a contract, e.g. size of a property, age of a property

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3 years ago
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As a response to potential bankruptcy, Michael Brown, an emergency manager took over the daily management of flint, in 2011.

The Flint water crisis started with a bankrupt city trying to save money. It ended with the declaration of a federal state of emergency after as many as 8,000 children were exposed to a poisonous element that will have lifelong effects on their brain and nervous systems.

Even before the lead crisis, Flint was struggling. About 40 percent of its residents live in poverty. Gov. Rick Michigan Snyder had appointed Michael Brown   an emergency manager, an unelected official with near-total control over the city's finances, because Flint was near bankruptcy.

To learn more about Flint here

brainly.com/question/23040788

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In December, Juliet had a job of wrapping gifts for a department store. But after the holidays were over, the store no longer ne
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Seasonal unemployment?
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