Answer:
1. JOURNAL ENTRIES
Dr. Allowance for Doubtful Debts
Cr. Accounts receivable
Being bad debts written-off
2. JOURNAL ENTRIES
Dr. Cash
Cr. Bad debts recovered
Being bad debts written off, now recovered.
Explanation:
At the end of 2016, blossom company has accounts receivable of $691,500 and an allowance for doubtful accounts of $25,740.
1. If on January 24, 2017, it is learned that the company's receivable from Madonna inc. is not collectible and therefore management authorizes a write-off of $3,943.
JOURNAL ENTRIES
Dr. Allowance for Doubtful Debts
Cr. Accounts receivable
Being bad debts written off
2. on march 4, 2017, blossom company receives payment of $3,943 in full from Madonna inc.
JOURNAL ENTRIES
Dr. Cash
Cr. Bad debts recovered
Being bad debts written off, now recovered.
Answer: $2
Explanation:
The formula for simple interest = I = prt
I =$ 100 × 0.02 × 1 = $2
At the end of one year, $2 would be made.
Answer: b. These would not be withheld by the company.
c. As an independent contractor they would be responsible for their own payments
Explanation:
Here is the complete question:
Beth Caldwell is in the payroll accounting department of Acerill Films. An independent contractor of the company requests that Social Security and Medicare taxes be withheld from future compensation. What advice should Beth offer?(You may select more than one answer).
a. The independent contractor should complete Form W-4 to authorize FICA tax withholding.
b. These would not be withheld by the company.
c. As an independent contractor they would be responsible for their own payments.
An independent contractor is someone that has his or her won personal business but still does work for other organizations or businesses. Is should be noted that independent contractors should not be considered to be part of the workers in the organization they work for.
Beth Caldwell should not take taxes out of the payments that will be paid to the person because he is responsible for his or her won payment and normally, they pay the self employment tax which is just like paying for social security and Medicare taxes.
Answer:
The discount will not affect the net income as no gain is recognize nor expense.
the cash flow statemetn will decrease by 3,960 which is the cash used.
the balance sheet after the series of trasnactions, will show inventory for 3,960
Cash would have decrease by 3,960
No change on equity.
Explanation:
inventory 5,000 debit
accounts payable 5,000 credit
account payable 1,000 debit
inventory 1,000 credit
Account payable 4,000 debit
Inventory 40 credit
Cash 3,960 credit
Answer:
$1,280,000 = cost of goods purchased
Explanation:
Giving the following information:
Inventory decreased by $80,000
COGS= $1,200,000
<u>If inventory decreased, the beginning inventory is lower than the beginning inventory</u>. We will use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
1,200,000 = cost of goods purchased - 80,000
1,280,000 = cost of goods purchased
