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Orlov [11]
3 years ago
8

Twilight Company uses the aging of accounts receivable method to estimate Bad Debt Expense. The balance of each account receivab

le is aged on the basis of three categories as follows: (1) 1-30 days old, (2) 31-90 days old, and (3) more than 90 days old. Based on experience, management has estimated what portion of receivables of a specific age will not be paid as follows: (1) 3%, (2) 14%, and (3) 37%, respectively. At December 31, 2019, the unadjusted credit balance in the Allowance for Doubtful Accounts was $270. The total Accounts Receivable in each age category were: (1) 1-30 days old, $63,000, (2) 31-90 days old, $12,000, and (3) more than 90 days old, $5,000.
Required:
a. Calculate the estimate of uncollectible accounts at December 31, 2019.
b. Prepare the appropriate adjusting entry dated December 31, 2019
Business
1 answer:
AnnZ [28]3 years ago
6 0

Answer:

a.                          Acct. receivable   % uncollectible   Est. uncollectible

1-30 days old           $63,000                      3%                    $1,890

31-90 days old         $12,000                      14%                   $1,680

> 90 days old           $5,000                       37%                  <u>$1,850</u>

                                                                   Total                   <u>$5,420</u>

b. Date   General journal                                         Debit    Credit

Dec 31    Bad debts expenses                                $5,150

                      Allowance for doubtful accounts                   $5,150

              ($5,420 - $270)

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How do banks create money?
Dafna11 [192]

Answer:

Commercial banks, required reserve, loans, deposits, create.

Explanation:

The main function of commercial banks is to accept deposits and then to lend the same money (minus required reserves) back out. Banks make a profit by charging a higher interest rate on loans than the interest rate they pay on deposits. Through the loan process, banks are actually able to create money.

The major function of commercial banks is

1. Accepting deposits from people and business organzations.

2. Giving loans to Customers to be paid at a specific period of time at an agreed interest rate.

Required reserve is the minimum amount of money which in required for a commercial Bank to hold/save out of every deposit. If the required reserve is 10% of every deposit, a customer customer deposited $100. The required will be $10 which the bank will hold. The remaining $90 is the balance which banks can loan out to Customers.

Commercial Banks make profit by charging a higher interest rate on loan and lower interest rate on deposits. For example: 7.5% interest rate on loan and 2.5% interest rate on deposits. The 5% difference is the bank Profit.

5 0
3 years ago
In 2019, the CEO of Crimson, Inc., entertains seven clients at a skybox in Memorial Stadium for a single athletic event during t
hram777 [196]

Answer:

Crimson may not be able to deduct any of the cost incurred. In other words these expenses are inadmissible.

Explanation:

As per scenario given in the above question, Crimson Inc., may not be able to deduct any cost which is incurred related to the entertainment expenses because many changes has been made in the tax cuts and Jobs act,2017. These changes does not allowed deduction of the entertainment and business meals expenses.

In the year 2018, the entertainment expenses could not be deducted according to the tax laws applicable on the companies. Thus, the costs will not be deducted.

4 0
3 years ago
Fred and Torrie Jones are a retired couple looking for income. They are currently rebalancing their portfolio of stocks to inclu
sergey [27]

Answer: E

Dividend yield

Explanation:

Dividend yield is a company's total annual dividend payments divided by its number of shares. Since Fred and Torrie are more interested in how much dividends their investment will yield, one metric that will prove useful is the dividend yield per share. Contribution margin and current ratio are about how well the company is being run and does not directly reflect divided. Dividend payout ratio has no relationship between invested funds and dividend, it only compares dividend against reported profit.

4 0
3 years ago
Read 2 more answers
When there are differences between the cash balance per bank and the cash balance per books, this is due to:____.
QveST [7]

When there are differences between the cash balance per bank and the cash balance per book, this is due to the Bank reconciliation statement.

The key difference between cash book balance and bank statement balance is that cash book balance shows the cash balance recorded in a company's cash book while bank statement balance is the cash balance recorded by the bank in its bank records. is.

Such fees and charges are charged to the savings cash balance book, but no entry is made in the cash book unless the company receives the savings book from the bank and records these entries. This creates a difference between the two balances.

Learn more about cash balance at

brainly.com/question/24979735

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6 0
2 years ago
Turnips and Parsley common stock sells for $39.86 a share at a market rate of return of 9.5 percent. The company just paid their
valkas [14]

Answer:

The rate of growth of their dividend is 6.30%.

Explanation:

This problem requires us to calculate the growth rate at which the dividend will grow. The market value of share and market rate of return is also given in the problem. So we can easily calculate it using market valuation formula.

MV = D(1+G%)/ke

39.86 = 1.2 (1+G%)/(9.5%-G%)

G =  6.30%                    

4 0
3 years ago
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