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
PolarNik [594]
3 years ago
14

Mill Co.’s allowance for credit losses was $100,000 at the end of Year 2 and $90,000 at the end of Year 1. For the year ended De

cember 31, Year 2, Mill reported credit loss expense of $16,000 in its income statement. What amount did Mill debit to the appropriate account in Year 2 to write off actual bad debts?
Business
1 answer:
MatroZZZ [7]3 years ago
7 0

Answer:

The amount worth $6,000 will be debited to the account in Year 2

Explanation:

When the uncollectible accounts are written off, then the debit is created to the allowance and the credit to the accounts receivable. The starting balance in the allowance account is $90,000 and the ending balance is $100,000 and the expense of bad debt is $16,000

The write off is computed as:

Write off = Beginning balance + Bad debt expense - Ending balance

= $90,000 + $16,000 - $100,000

= $106,000 - $100,000

= $6,000

Therefore, the amount of $6,000 is to be write off in Year 2

You might be interested in
Texas Corporation is undergoing a complete liquidation and distributes land to​ Robert, one of its​ shareholders, in exchange fo
Oxana [17]

Answer:

Loss to be recognized is $25000

Explanation:

Liquidation refers to a process whereby a company's operation come to an end, which leads to distribution of assets and liabilities to the claimants and winding up the business.

A company may be forced to liquidate owing to consistent losses. In such cases, the claims of all the stakeholders cannot be satisfied and they receive pro-rata basis allocation which covers everybody's claim to an extent, if not fully.

In the given case,

Robert's receipt is Land. Liabilities attached to the land being $325,000 while the land has fair market value of $400,000.

Thus, after assuming the liability, Robert's actual realized amount is,

$400,000 - $325,000 = $75,000

Since, the land was received in consideration for discharge of Robert's own share in company amounting to $100,000.

Thus, Gain/Loss to be recognized by Robert = $75, 000 (receipts) - $100,000

                                                                  = - $25,000

i.e Robert should recognize a loss of $25,000.

4 0
3 years ago
A bank has $8,000 in deposits and $6,000 in loans. It has loaned out all it can given the reserve requirement. It follows that t
Wittaler [7]

Answer:

c. 25 percent.

Explanation:

The computation of the reserve requirement percentage is shown below:

Given that

Deposits made = $8,000

Loans = $6,000

So the required reserve is

= deposits made - loans

= $8,000 - $6,000

= $2,000

Now the required reserve is

= $2,000 ÷ $8,000

= 25%

Hence, the correct option is c. 25 percent

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

7 0
3 years ago
You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect
dedylja [7]

Answer:

Amount investment in Sock Y = - $126,000

Beta of portfolio = 1.636

Explanation:

Data provided in the question:

Total amount to be invested = $140,000

Stock                          X       Y

Expected return       14%     10%

Beta                          1.42     1.18

Expected return of portfolio = 17.6%

Now,

let the weight invested n stock X be W

therefore,

Weight of Stock Y = 1 - W

thus,

( W × 14% ) + (1 - w) × 10% = 17.6 %

or

14W + 10% - 10W = 17.6%

or

4W = 7.6

or

W = 1.9

Therefore,

weight of Y = 1 - 1.9 = -0.9

Thus,

Amount investment in Sock Y = Total amount to be invested × Weight

= 140,000 × ( - 0.9 )

= - $126,000 i.e short Y

Beta of portfolio = ∑ (Beta × Weight)

= [ 1.42 × 1.9 ] + [ 1.18 × (-0.9) ]

= 2.698 - 1.062

= 1.636

6 0
3 years ago
How manny people went to collage, and wish they hadn't? (This year.) (Average)
Anna007 [38]
Around 22 % this year alone.

8 0
3 years ago
Read 2 more answers
If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth i
aksik [14]
<span>To find the compound interest of an investment you have to use this formula, A = P(1 + r/n)^nt, where A is the total amount you have after the investment period, P is the amount you invest or the amount you put in, r is the rate of the of the compound interest in this case 10%, n is the amount of time the interest will be compounded for example, 4 months a year(quarterly) or 6 months a year(semi annually), and t is the amount of time you invest in years. So in this case you are going to substitute everything in the formula with their given value. So P = $700, r = 10%, n = 21 (because it is the number of months we invest for), and t = 2 years (because 21 months fit perfectly in 2 years, and t must always be in years). The resulting formula will be A = $700(1 + 0.1/21)^(21 x 2), which will give you an answer of $855 rounded to the nearest dollar.</span>
8 0
3 years ago
Other questions:
  • Because risk is associated with the potential for higher profits, businesspersons are motivated to choose organizational forms t
    14·1 answer
  • How can expectations about the future change consumer behavior?
    13·2 answers
  • Which one of the following is a selection method that organizations can adopt to identify employees who innovate, share ideas, a
    13·1 answer
  • By comparing opportunity costs and gains from trade for two parties each making the same two goods, one can determine the exact
    11·1 answer
  • Hall Corporation reported the following operating results for two consecutive years.
    10·1 answer
  • Financial leverage: Group of answer choices is the ratio of a firm's revenues to its fixed expenses. is equal to the market valu
    15·1 answer
  • During the year, Kiner Company made an entry to write off a $32,000 uncollectible account. Before this entry was made, the balan
    7·1 answer
  • A furniture company using accrual accounting purchased 20 sofas in November 2011. In December 2011, 8 of the 20 sofas were sold
    6·1 answer
  • 1. For financial accounting purposes, what is the total amount of product costs incurred to make 21,750 units
    5·1 answer
  • Business-to-business (B2B) marketing refers to buying and selling goods or services to consumers. True False
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!