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3 years ago

Discount Mart utilizes the allowance method of accounting for uncollectible receivables.

Business

1 answer:

lara [203]3 years ago

6 0

Answer: See explanation

Explanation:

From the question, we are given the information that on December 12, the company receives a $540 check from Chad Thomas in settlement of Thomas's $1,280 outstanding accounts receivable, then the journal entry based on the above will be:

December 12:

Debit Cash $540

Debit Allowance for doubtful account $740

Credit Account receivable $1280

Note that the allowance for doubtful account was calculated as:

= Account receivable - Cash

= $1280 - $540

= $740

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Dynatech issues 1,000 shares of $10 par value common stock at $12 per share. When the transaction is recorded, which accounts ar

morpeh [17]

Answer:

Common Stock $10,000 and Paid-in Capital in Excess of Par Value $2,000

Explanation:

The journal entry to record the issuance of common stock is presented below:

Cash A/c Dr $12,000 (1,000 shares × $12)

To Common Stock $10,000 ($1,000-× $10)

To Additional Paid-in Capital in excess of par - Common Stock $2,000

(Being the issuance of stock is reported and the remaining balance i.e $2,000 is credited to the additional paid-in capital account)

While issuing the stock, we debited the cash account as there is a cash inflow and credited the common stock and additional paid-in capital account as the share is issued which affect the stockholder equity

7 0

3 years ago

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch

cricket20 [7]

Answer:

a) Present value of the investment: $198,936

b) if the present worth of the investment which are discounted at MARR rate is positive, the investment is worth investing, while if the present value of the investment is negative, Investor should not invest.

c) As calculated in (a), present value of the investment is $198,936, Bailey should buy the gang punch

Explanation:

Please find detailed of calculation in (a) which is shown as below:

Present value = Present value of saving in raw material - Present value of increase in labor cost - Initial investment = [ (12,250/ 5%) x (1-1.05^-15)] - [ (3,200/ 5%) x (1-1.05^-15)] - 105,000 = $198,936.

7 0

3 years ago

Why are social security and medicare considered highly efficient programs? multiple choice they are administered at the local le

gregori [183]

The largest and most expensive social welfare programs in America are Social Security and Medicare. Medicare receives the funding the most, and it is not tested program while the social security is the example of entitlement. The Social Security Act of 1935 brought government into the equation of the obligations of one generation to another.

6 0

3 years ago

Jones Company sells an average of 200 chairs per week, of which 30% are regular chairs and 70% are executive chairs. Regular cha

MissTica

Answer:

Contribution margin per unit: $42.9

Total contribution margin: $8,580

Explanation:

The contribution margin per unit is calculated by calculating the total contribution margin, which is basically the total sales, minus the costs of production, in this cae we have that we sold:

60 regular chairs

140 executive charis

Now the total in sales is:

Regular sales: $6,000

Executive chairs: $23,800

The variable cost of each is:

Regular chairs: $3720

Executive chairs: $17,500

We add up the sales and withdraw from it the total variable cost:

29,800-21,220=8,850

The total contribution margin is equal to $8850.

And the contribution margin per unit is given by dividing the total contribution margin by the number of units sold:

8850/200= 42.9

So the contribution margin per unit is 42.9 dollars.

7 0

3 years ago

A movie production studio incurred the following costs related to its current movie: Purchased office supplies on account: $36,0

PilotLPTM [1.2K]

Answer:

S/n General Journal Debit Credit

a. Office supplies $36,000

Account payable $36,000

b. Work in process $22,509

Office supplies $22,509

c. Manufacturing overhead $7,550

Office supplies $7,550

d. Work in process $32,503,220

Wages payable $32,503,220

e. Manufacturing overhead $574,327

Wages payable $574,327

f. Manufacturing overhead $957,320

Utilities payable $957,320

g. Work in process $3,250,322

Manufacturing overhead $3,250,322

4 0

2 years ago