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Alenkinab [10]
3 years ago
14

Creative Solutions Company, a computer consulting firm, has decided to write off the $13,780 balance of an account owed by a cus

tomer, Wil Treadwell.
a. Journalize the entry to record the write-off, assuming that the direct write-off method is used.
b. Journalize the entry to record the write-off, assuming that the allowance method is used.
Business
1 answer:
wlad13 [49]3 years ago
3 0

Answer and Explanation:

The journal entry for recording the bad debt expense is shown below:

a.  In case of when direct write off method is used

Bad debt expense $13,780  

             To Account receivable-Wil Treadwell $13,780

(Being bad debt expense is recorded)

Here the bad debt expense is debited as it increased the expenses and credited the account receivable as it decreased the assets

b. In case of when allowance method is used

Allowance for doubtful accounts $13,780  

          To Account receivable-Wil Treadwell $13,780

(Being the allowance is recorded)

Here the allowance is debited as it increased the assets and credited the account receivable as it decreased the assets

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Answer: Debit to warranty payable the actual amount paid out as a result of warranty claims

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In recording a warranty payable, a debit is made to warranty expenses account and a credit to warranty payable account.

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4 years ago
The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it hol
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Answer: d. 20

Explanation:

The Money multiplier is the number that new deposits are multiplied with to find out their total effect on the banking system.

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7 0
3 years ago
if you have raw or undercooked items on the menu, how can you advise customers of the risk of eating them? by having service sta
Pepsi [2]

Answer:

B)By posting a sign in the establishment

<h3>What food may increase your risk of foodborne illness if not cooked?</h3>
  • “Consuming raw or undercooked meats, poultry, seafood, shellfish, or eggs may increase your risk of foodborne illness.”
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8 0
1 year ago
5.For the past year, Chandler Company had fixed costs of $70,000, unit variable costs of $32, and a unit selling price of $40. F
zheka24 [161]

Answer:

a.

Break even in units = 8750 units

b.

Break even in units = 10000 units

Explanation:

The break even in units is the number of units that a business must sell in order to for its total revenue to be equal to total costs and for it to break even. The break even in units is calculated as follows,

Break even in units = Fixed Costs / Contribution margin per unit

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Contribution margin per unit = Selling price per unit - Variable cost per unit

a. Past Year

Break even in units = 70000 / (40 - 32)

Break even in units = 8750 units

b. Coming Year

The property taxes which are a fixed cost will increase by $10000. Thus total fixed cost for coming year will be = 10000 + 70000 = 80000

Break even in units = 80000 / (40 - 32)

Break even in units = 10000 units

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