<span>In the example of the Magnira Corporation, the fruits are turned into jellies, jams, and marmalades an example of raw materials. Raw materials are basic, unprocessed materials that are used to manufacture goods. Raw materials are often referred to as commodities.</span>
Answer:
<em>Incomplete question is "2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021?"</em>
1. Gross accounts Receivable = Allowance Account balance at beginning / 10%
= $30,000 / 10%
= $300,000
2. Year Account Title Debit Credit
2021 Bad debt expense $105,000
($500,000*10% + $55,000)
To Allowance for Doubtful Accounts $105,000
3. Accounts receivable written off = Beginning balance of Allowance Account - Ending Balance of Allowance account
= $30,000 - (- $50,000)
= $30,000 + $50,000
= $80,000
4. Bad debt expense for 2021 (direct write off method) = Amount written off = $80,000
Answer:
B. Collateral promise.
Explanation:
Collateral promise refers to a promise to pay the debt of another that is ancillary to an original promise. It is an undertaking which renders the promisor a guarantor or surety upon a debt owing by a third person who is primarily liable. It is not made for the benefit of the party making it.
Answer:
estimated inventory is $395000
C is correct option
Explanation:
given data
Inventory = $300000
sales = $1300000
purchases = $875000
gross profit = 40%
to find out
estimated inventory
solution
we find estimated inventory by this formula
estimated inventory = Inventory + purchases - (100% - 40%)sale
put here all value
estimated inventory = 300000 + 875000 - (100% - 40%)1300000
estimated inventory = 300000 + 875000 - 780000
estimated inventory = 395000
so estimated inventory is $395000
C is correct option
Answer:
$215,000.
Explanation:
An inventory report is a summary of items belonging to a business, industry, or organization. The physical inventory must be done in all of the locations where the firm has stocks.
If the company send inventory to a retailer as consignment, invoicing doesn’t occur until that retailer has sold said inventory. While the inventory is in the retailer’s store, the company still own it and that needs to be reflected on your Balance Sheet.
In this case, the correct amount of inventory that Railway should report is:
$180,000 of physical inventory worth + $35,000 Rogers Consignment store currently goods worth = $215,000 inventory that Railway should report.
