5. Customers' service expectations are

Prepare the adjusting entry to record bad debts under each separate assumption.

disa [49]

The preparation of the adjusting entries to record bad debts for Hawke Company under each separate assumption are as follows:

A) Bad Debts $169,790 Allowance for Doubtful Accounts $169,790

B) Bad Debts $189,173 Allowance for Doubtful Accounts $189,173

C) Bad Debts $102,935 Allowance for Doubtful Accounts $102,935

<h3>Data and Calculations:</h3>

A) Allowance for doubtful accounts = $142,320 ($3,558,000 x 4%)

Bad Debts Expense = $169,790 ($142,320 + $27,470)

B) Allowance for doubtful accounts = $161,703 ($3,558,000+ $1,832,100 x 3%)

Bad Debts Expense = $189,173 ($161,703 + $27,470)

C) Allowance for doubtful accounts = $75,465 ($1,078,074 x 7%)

Bad Debts Expense = $102,935 ($75,465 + $27,470)

<h3>Question Completion:</h3>

On December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales

$1,832 100 $3,558,000

In addition, its unadjusted trial balance includes the following items. Accounts receivable $1.078.074 debit

Allowance for doubtful accounts $27,470 debit.

Learn more about allowances for doubtful accounts at brainly.com/question/26498002

3 0

2 years ago

SDJ, Inc., has net working capital of $2,170, current liabilities of $4,590, and inventory of $3,860. a. What is the current rat

Feliz [49]

Answer:

1.47 times ; 0.63 times

Explanation:

Given that,

Net working capital = $2,170,

current liabilities = $4,590

Inventory = $3,860

Current assets = net working capital + current liabilities

= $2,170 + $4,590

= $6,760

Current ratio = current assets ÷ current liabilities

= $6,760 ÷ $4,590

= 1.47 times

Quick ratio = (current assets - inventory) ÷ current liabilities

= ($6,760 - $3,860) ÷ $4,590

= 0.63 times

8 0

3 years ago

Suppose the Federal Reserve purchases a $100,000 bond from John Doe, who deposits the proceeds in the Manufacturer's National Ba

timurjin [86]

Answer:

Explanation:

I hope you get a second answer to this so I can see what the actual answer is. My guess is that the Federal Reserve has just put money into the system by purchasing Doe's bond. The fact that Doe puts it in a bank account does not change the fact that we are uncertain where the Feds got the money to buy the bond. They have the power to print money. They've just used some of that printed money to buy something that might be of value.

8 0

3 years ago

Ivanhoe Company has the following cumulative taxable temporary differences: 12/31/22 12/31/21 $3200000 $2260000 The tax rate ena

FrozenT [24]

Answer:

$6,840,000

Explanation:

12/31/21 12/31/22

$2260000 $3200000

taxable income for 2022 = $5,900,000

Ivanhoe's pretax financial income = 2022 taxable income + (temporary differences 2022 - temporary differences 2021) = $5,900,000 + ($3,200,000 - $2,260,000) = $5,900,000 + $940,000 = $6,840,000

A taxable temporary difference will affect future taxable amounts when determining a profit or loss.

7 0

3 years ago

Hartley's meat pies is considering replacing its existing delivery van with a new one. thenew van can offer considerable savings

tigry1 [53]

Answer:

Increase by $75,000

Explanation:

Existing van New van

Original cost $56,000 $95,000

Annual operating cost $22,500 $15,000

Accumulated depreciation $33,000

Current salvage value of the existing van $27,500

Remaining life 10 years 10 years

Salvage value in 10 years, $ 0, $0

Annual depreciation, $2,300, $9,500

If Hartley's Meat Pies replaces the existing delivery van with the new one, over the next 10 years operating income will increase by 75000 dollars as follows:

New van ($15,000 × 10 years) - Existing van ($22,500 × 10 years) = $75,000

7 0

3 years ago