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
miskamm [114]
3 years ago
7

Presented below is information related to Shamrock Corp., which sells merchandise with terms 2/10, net 60. Shamrock Corp. record

s its sales and receivables net. July 1 Shamrock Corp. sold to Warren Harding Co. merchandise having a sales price of $15,000. 5 Accounts receivable of $14,300 (gross) are factored with Andrew Jackson Credit Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds; collections are handled by the finance company. (These accounts were all past the discount period.) 9 Specific accounts receivable of $14,300 (gross) are pledged to Alf Landon Credit Corp. as security for a loan of $6,500 at a finance charge of 6% of the amount of the loan. The finance company will make the collections. (All the accounts receivable are past the discount period.) Dec. 29 Warren Harding Co. notifies Shamrock that it is bankrupt and will pay only 10% of its account. Give the entry to write off the uncollectible balance using the allowance method. (Note: First record the increase in the receivable on July 11 when the discount period passed.)
Business
1 answer:
Arada [10]3 years ago
8 0

Answer:

Shamrock Corp.

Entry to write off the uncollectible balance of Warren Harding Co.:

Debit Allowance for Uncollectible accounts $13,500

Credit Accounts Receivable $13,500

To write off the uncollectible account.

Explanation:

a) Data and Calculations:

Credit terms = 2/10, net 60.  This means that 2% discount is allowed to each customer for making payment within 10 days and the longest credit is 60 days.

Sales to Warren Harding Co = $15,000

Amount debited to Accounts Receivable = 14,700 ($15,000 * 98%)

Amount paid by Warren (10%) = $1,500

Amount to be written off as uncollectible = $13,500

Discount of $300 will be reversed with a debit to the Accounts Receivable and a credit to Discount Allowed (since the Shamrock Corp. records its sales and receivables net.)

Cash of $1,500 will be debited and Accounts Receivable credited to record the 10% of $15,000 cash receipt from Warren Harding Co.  The remaining amount, which is $13,500 will be written off with a debit to Allowance for Uncollectible accounts and a credit to Accounts Receivable.

You might be interested in
If the fed expands the money supply by $1 trillion, what will happen in the money market?
natta225 [31]
<span>If the Fed expands the money supply by $1 trillion, the money market will be (letter C.) the equilibrium interest rate will fall, and more money will exchanged in equilibrium. It is because people will have more money to spend. Some would choose to use this money to buy goods and services while other opt to put their money in banks which may lead to lower interest rates to persuade people in borrowing. </span>
4 0
3 years ago
In​ ______ cycle​ theory, fluctuations in both investment and consumption​ expenditure, driven by fluctuations in the growth rat
Leno4ka [110]

Answer: Monetarist

Explanation:

The monetarist theory is a theory which believes that the changes in the supply of money is the most important factor in the growth of an economy.

In this concept, economic stability can be fostered through targeting the money supply. The theory assume that the fluctuations in both the investment and consumption​ expenditure, which are s a result of the fluctuations in growth rate of the quantity of​ money, are the main source of fluctuations in aggregate demand.

7 0
3 years ago
Former GVO marketing director, David Lieberman, tells a story about a new product idea proposed by a creative person. The idea w
Sati [7]

Answer:

The correct answer is C) behavioral barrier.

Explanation:

Organizational barriers can be any number of things that range from physical elements to individual and group attitudes. They don't have to be important elements. They can be as simple as an extended absence of employees or as important as the acquisition of an organization by a foreign government. They can even be perceptions that have no basis in reality. The key to identifying barriers and eliminating their constrictive effect is to carefully identify all aspects of them.

4 0
3 years ago
Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations up
frozen [14]

Answer:

Yes it does as the company expect to pay for the warranty but doesn't know as it may occur or don't dependion upon the notebook hardware and software performance over the 90-days period

Warranty expense 29,500 debit

   Warranty Liability       29,500 credit

Explanation:

We will record a warrant liability for the 5% of the mount sold. As the warranty liability is generated at the time of sale which occur in December

3 0
3 years ago
Chipotle developed a mobile social game called Scarecrow that allowed players who achieved average to high marks in the game to
Tema [17]

Answer:

Advergame

Explanation:

An advergame is a game that is developed in conjuction with a corporate firm which contains advertisment of the products of the corporate firm as well as the firm itself.  

In an advergame, adverts related to the corporate firm that has teamed up with the gaming company are displayed at stages or intervals as agreed upon by the corporate firm and the gaming company.

In the case of Chipotle, it developed a social game to help customers get coupons that can be redeemed at Chipotle stores all over. The scarecrow game is an advergame.

Cheers.

7 0
3 years ago
Other questions:
  • Indy Sport and Hobby's Allowance for Doubtful Accounts had an unadjusted credit balance of $400. The manager estimates that $900
    5·2 answers
  • For each of the​ following, describe some of the potential opportunity costs ​:1. Going home for Thanksgiving vacation. A. Time
    14·1 answer
  • The market size and market growth rates in the foreign market can be influenced negatively by:______.A. population sizes, income
    12·1 answer
  • SuperSports Inc.reported pretax financial income of $260,000 for the year 2016. Taxable income of SuperSports is however differe
    8·1 answer
  • An automatic stabilizer:________
    14·1 answer
  • Think of a business that utilized one of the three methods of innovation to start their business, identify the business, the typ
    8·1 answer
  • What is the disadvantages of uber eats in fast food industry
    5·1 answer
  • A firm that is considering changing the colors used on its packaging wants to determine the effect of different color schemes on
    9·1 answer
  • A four-bedroom, four-bath, 4,875-square-foot house was listed at $445,000. Andreas, the seller, accepted an offer that was 95% o
    7·1 answer
  • . A gracious welcome by an employee at the hotel check-in counter is an example of: a. social sustainability. b. predictive anal
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!