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zavuch27 [327]
3 years ago
11

During its first year of operations, Mack's Plumbing Supply Co. had sales of $550,000, wrote off $8,800 of accounts as uncollect

ible using the direct write-off method, and reported net income of $60,500. Determine what the net income would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible.
Business
1 answer:
vova2212 [387]3 years ago
3 0

Answer:

$60,500

Explanation:

With regards to the above, the write off does not affect the realizable value of accounts receivables. Also, the total asset or net income is not affected by the write off or specific account. Instead, both assets and net income are affected in the period when bad debt expense is predicted and then recorded with an adjusting entry.

Accounts receivables

$550,000

Less:

Allowance for doubtful account

($550,00 × 2.5%)

($13,750)

Estimated realizable accounts receivables

$536,250

If the amount of bad debt decreases or increases as given below, then the income is also increased or decreased by the amount given.

Bad debts = $13,750

Uncollectible previously written off = $8,800

Difference

$4,950

Net income

$60,500

Less:

Difference

($4,950)

Reported income

$55,550

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When building a new residential development or mall, a national real estate organization typically does not remove many trees, b
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The answer is: B) sustainability

Explanation:

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5 0
3 years ago
Yale Corporation issued to Zap Corporation $48,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year b
tino4ka555 [31]

Answer:

Yale Corporation

Journal Entries:

a. January 1, 2020:

Debit Cash $44,878

Debit Premium on bonds $3,122

Credit 8% Bonds Payable $48,000

To record issuance of the bonds.

b. June 30, 2020:

Debit Interest Expense $2,020

Credit Bond Discounts $100

Credit Cash $1,920

To record the first payment of interest.

Explanation:

a) Data and Calculations:

January 1, 2020:

Face value of bonds = $48,000

Price of bonds =           $44,878

Discounts on bonds =    $3,122

Coupon interest rate = 8%

Interest payment = semiannually on June 30 and December 31

Maturity period = 10 years

Effective interest rate = 9%

June 30, 2020:

Interest Expense      $2,020 ($44,878 * 4.5%)

Cash payment             1,920 ($48,000 * 4%)

Discount amortization $100

Value of Bonds =   $44,978 ($44,878 + $100)

December 31, 2020:

Interest Expense      $2,024 ($44,978 * 4.5%)

Cash payment             1,920 ($48,000 * 4%)

Discount amortization $104

Value of Bonds =   $45,082 ($44,978 + $104)

N (# of periods)  20

I/Y (Interest per year)  9

PMT (Periodic Payment)  1920

FV (Future Value)  48000

Results

PV = $44,878.10

Sum of all periodic payments $38,400.00

Total Interest $41,521.90

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3 years ago
Why do so many new products fail? Give your opinion
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Answer:

BECAUSE THEY SUCK

No jk

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About 30 to 45% of new products fail to deliver any meaningful financial return. This typically happens due to a number of reasons, from poor product / market fit, failure to understand customer needs (or fixing a non-existing problem), to a lack of internal capabilities.

4 0
3 years ago
Read 2 more answers
Lindell sells $100 of goods to a customer. The customer pays with a personal check. Recording this transaction will include a
Dafna1 [17]

If the customer pays with a personal check. Recording this transaction will include a Debit Cash $100.

<h3>
Journal entry</h3>

Based on the information given since Lindell sells good of the amount of $100 to a customer in which the customer pays with a personal check the appropriate journal entry to record this transaction will includes;

Lindell journal entry

Debit Cash $100

Credit Check receivable $100

Inconclusion if the customer pays with a personal check. Recording this transaction will include a Debit Cash $100.

Learn more about journal entry here:brainly.com/question/14279491

6 0
2 years ago
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