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nikklg [1K]
2 years ago
7

Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,600 account of a customer

, C. Green. On March 9, it receives a $1,100 payment from Green.
1. Prepare the journal entry or entries for January 31
2. Prepare the journal entry or entries for March 9; assume no additional money is expected from Green.
Business
1 answer:
umka21 [38]2 years ago
3 0

Answer: Please see explanation for answers

Explanation:

1. Journal entry to record bad debt on January 31st

Date            Account Titles and Explanation            Debit            Credit

Jan. 31st      Allowance for doubtful account            $1,600

Account receivables  ( Customer C. Green)                                  $1.600

2. Journal entry to record recovery of bad debt on March 9

A) To reinstate Amount previously written off

Date            Account Titles and Explanation                  Debit            Credit

March 9 Account receivables  ( Customer C. Green)    $1,100

Allowance for doubtful account                                                          $1,100

B) To record payment of account

Date            Account Titles and Explanation             Debit            Credit

March 9            Cash                                                   $1,100

   Account receivables( Customer C. Green)                                  $1,100

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On November 7, Mura Company borrows $370,000 cash by signing a 90-day, 8%, $370,000 note payable. 1. Compute the accrued interes
Hatshy [7]

Answer:

At 31 December, the Interest for 54 days accrues as follows :

Interest expense $17,740 (debit)

Note Payable $17,740 (credit)

On payment February 5, the Interest expense will be capitalized in the Note Payable as follows :

Note Payable $407,473 (debit)

Cash $407,473 (credit)

Explanation:

AT, November 7, When Mura Company borrows the money :

Cash $370,000 (debit)

Note Payable $370,000  (credit)

At 31 December, the Interest for 54 days accrues as follows :

Interest expense $17,740 (debit)

Note Payable $17,740 (credit)

Interest expense calculation = $370,000 × 8% × 54/90

                                                = $17,740

At February 5, the interest for 60 days accrues as follows :

Interest expense $19,733 (debit)

Note Payable $19,733 (credit)

Interest expense calculation = $370,000 × 8% × 60/90

                                                = $19,733

On payment February 5, the Interest expense will be capitalized in the Note Payable as follows :

Note Payable $407,473 (debit)

Cash $407,473 (credit)

Note Payable Calculation = $370,000 + $19,733 + $17,740

                                              $407,473

3 0
3 years ago
When they first started to conduct business, international ride-sharing companies such as Uber or Lyft relied on new, unfamiliar
kobusy [5.1K]

Ride sharing is transformational innovation, according to the innovation matrix.

Uber and Lyft use transformational innovation

  • Transformational innovation includes making discoveries and creating products for the market.
  • Companies like Uber use credit and debit cards for reservations, a novel tactic.
  • Such ideas were virtually unknown to markets in many nations.
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5 0
2 years ago
According to the law of increasing opportunity cost, as a society _________ more and more of a certain good, further production
Effectus [21]

Answer:

produces  

increases

trade-offs

Explanation:

The law of increasing opportunity cost states that when firms decide to make additional units of a certain product by reallocating resources, they do that at a higher opportunity cost than the previous production. The major traceable reason for this is inefficiency in resource reallocation.

This increase in opportunity cost is associated with increasing and increasing trade-off.

4 0
2 years ago
For each of the following separate situations, prepare he necessary accounting adjustments using the financial statement effects
mash [69]

Answer:

depreciation expense equipment 610 debit

  accumulated depreciation equipment  610 credit

utilities expense   390 debit

  utilities payable      390 credit

rent expense  700 debit

           prepaid rent       700 credit

insurance expense  468 debit

        prepaid insurance 468 credit

wages expense 965 debit

   wages payables  965 credit

interest receivables 300 debit

      interest revenue      300 credit

Explanation:

(C) rent calculations

2,800 --> four period of rent

2,800 / 4 = 700 per period

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624 for the entire years

expired  9 months in this period

$624 x 9/12 = 468

8 0
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Tom Tom LLC purchased a rental house and land during the current year for $150,000. The purchase price was allocated as follows:
Anika [276]

Answer:

correct option is B.$2,273

Explanation:

given data

purchased = $150,000

building = $100,000

land = $50,000

to find out

Tom's maximum depreciation for this first year

solution

we will apply here The mid month convention applies

and recovery period for Residential property =  27.5-year

maximum depreciation will be here as

maximum depreciation = $100,000 × 2.273%

maximum depreciation = $100,000 × 0.02273

maximum depreciation = $2,273

so correct option is B.$2,273

5 0
3 years ago
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