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Anna35 [415]
3 years ago
5

At the end of the current year, Accounts Receivable has a balance of $2,150,000; Allowance for Doubtful Accounts has a debit bal

ance of $10,500; and sales for the year total $51,850,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $110,000.
a. Determine the amount of the adjusting entry for uncollectible accounts.
b. Determine the adjusted balances of (i) Accounts Receivable (ii) Allowance for Doubtful Accounts (iii) Bad Debt Expense.
c. Determine the net realizable value of accounts receivable.
Business
1 answer:
disa [49]3 years ago
3 0

Answer:

a. Allowance for doubtful accounts = Unadjusted balance + Adjusted balance

= $10,500 + $110,000

= $120,500

b. i)The adjusted balance of accounts receivable shall be $2,150,000(adjusted debit balance)

ii) Adjusted balance = Bad debt expense - Unadjusted balance

= $120,500 - $10,500

= $110,000 (Adjusted credit balance)

iii) Adjusted bad debt expense = Unadjusted balance of allowance for doubtful accounts + Adjusted balance allowance for doubtful accounts

= $10,500 + $110,000

= $120,500 (Adjusted debit balance)

c. Net realizable value = Gross accounts receivable - Allowance for doubtful accounts

= $2,150,000 - $110,000

= $2,040,000

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Answer:

These are the answers to the question:

a. the price index in 2019 was lower than 126.0.

b. the price index in 2019 was lower than 147.0.

c. the price index in 2019 was lower than 151.2.

d. the inflation rate between 2018 and 2019 was lower than 1.2 percent.

And this is the correct answer:

b. the price index in 2019 was lower than 147.0.

Explanation:

We can see that the price index rose by 21 units from 105 in 2017 to 126 in 2018.

If the inflation rate was lower between 2018 and 2019, it means that the price index rose by less than 21 units during this period.

Because 126 + 21 = 147, we can be certain that the price index in 2019 was lower than 147.

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A government budget deficit affects the supply of loanable funds, rather than the demand for loanable funds, because a. in our m
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a. in our model of the loanable funds market, we define "loanable funds" as the flow of resources available to fund private investment.

Explanation:

Given that, government budget deficit is a term that describes a situation whereby the amount of government expenses is greater than the amount of government revenue over a given period of time. And at the same time, the loanable fund is the money available to find private investment

Hence, the right answer to the question is option a. in our model of the loanable funds market, we define "loanable funds" as the flow of resources available to fund private investment. Because, the insufficient revenue, will lead to little or no availability of resources to find private investment.

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Answer: B. $438

Explanation:

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Predetermined cost of correspondence = Allocated cost/ Allocated base

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Total Assets                     1720  (1085+635)

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Total Liabilities                          388   (305+83)ony's net wprth os

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6 0
3 years ago
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Answer:

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Many a times, a parent company holds stock in it's own subsidiary company. Consolidation refers to presentation of combined profitability of a group wherein a Parent Co holds majority of the common stock i.e more than 50% of the common stock in it's subsidiary.

Such a presentation presents the combined picture of a group and helps in better comprehension and understanding by the users of the financial statements.

If a parent owns 100% stock in it's subsidiary, such subsidiary is referred to as a wholly owned subsidiary.

5 0
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