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bogdanovich [222]
3 years ago
12

May 1. Sold merchandise on account to Taiwan Palace Co., $36,000. The cost of the merchandise sold was $23,540. Aug. 30. Receive

d $10,380 from Taiwan Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible. Dec. 8. Reinstated the account of Taiwan Palace Co. that had been written off on August 30 and received $25,620 cash in full payment. Required: Journalize the above transactions in the accounts of Arizona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. Refer to the chart of accounts for the exact wording of the account titles. KNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. KNOW journals will automatically indent a credit entry when a credit amount is entered.
Business
1 answer:
ioda3 years ago
4 0

Answer: See explanation

Explanation:

The journal entry will be prepared as follows:

May 1:

Dr Account receivable $36000

Cr Sales $36000

(To record sales)

Dr Cost of goods sold $23540

Cr Inventory $23540

(To record cost of goods sold)

August 30:

Dr Cash $10380

Dr Allowance for doubtful accounts $25620

Cr Account receivable $36000

(To record collection and written off)

December 8:

Dr Account receivable $25620

Cr Allowance for doubtful accounts $25620

(To record reinstatement)

Dr Cash $25620

Cr Account receivable $25620

(To record collection)

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melomori [17]

Answer:

0.6

Explanation:

Variable Expense Ratio is calculated by taking Variable Expense and dividing it by Sales. This ratio indicates how much of the variable expense is incurred by company for each $1 Sales.

So, variable expense ratio is .6 or 60% (33,000 / 55,000).

Such questions also require the calculation of Contribution Margin Ratio which is calculated by taking Contribution Margin and Dividing it by Sales. This ratio tells us how much the company generates after covering variables expenses when the sales are $1.

So, Contribution Margin Ratio is .4 or 40% (22,000 / 55,000).

6 0
4 years ago
Which of the following statements is CORRECT?
Colt1911 [192]

Answer:

e. One advantage of forming a corporation is that equity investors are usually exposed to less liability than they would be in a partnership.

Explanation:

The investor of a corporation have limited liability. This measn their responsability is capped at their contribution. On parthership, this does not ocurs.

(c)(d) Corporation face more regulation and are harder to create than a parthership.

(b) parthenrship has unlimited liability.

3 0
4 years ago
jonna is considering using a refund anticipation loan to have money for a deposit on a caribbean vacation what are two alternati
Pani-rosa [81]
Well i would say use a conventional loan but that is only for short term loans
4 0
4 years ago
Art's at-risk amount in a passive activity was $60,000 at the beginning of 2015. His loss from the activity in 2015 is $80,000,
kupik [55]

Answer:

d. $60,000

Explanation:

As per passive income rules, As stated under Internal Revenue Service is a kind of statement that allows to set off the passive loss as against passive income only.

There is no rule which permits to set it off against ordinary income.

Therefore, the details in the given instance are:

Loss of 2015 = ($80,000)

Income in 2016 = $20,000

Loss at the end of 2016 = ($60,000)

This because from the income in 2016 amounting $20,000 the loss of $20,000 is set off.

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3 years ago
Heidi, the found of Camp Bow Wow, started a franchise instead of only having one location in part because: _____________
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With the franchise of her Camp Bow Wow, <em>a. It allowed her to work at realizing her </em><em>vision</em><em> and building the </em><em>brand </em><em>rather than the day-to-day </em><em>operations </em><em>of the business.</em>

Heidi did not choose the franchise option because she had experience in founding other franchises, had her fill with corporate life, or needed to recover money wasted on the settlement of her late husband's plane crash lawsuit.

Thus, with her passion for the dog daycare business, she used the franchise option <em>to duplicate and replicate</em> the original business concept., thereby realizing her vision and building the Camp Bow Wow brand.

Learn more: brainly.com/question/18082361

3 0
3 years ago
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